Strengthening insurance partnerships in the face of climate change - insights from an agent-based model of flood insurance in the United Kingdom
Multisectoral partnerships are increasingly being mentioned as a mechanism to deliver and improve disaster risk management. In this paper, the authors investigate how partnerships can incentivise flood risk reduction by focusing on the UK public-private partnership on flood insurance. The findings of this publication are relevant for wider discussions on the potential of insurance schemes to incentivise flood risk management and climate adaptation not just in the United Kingdom (UK) but also internationally:
- Developing the right flood insurance arrangements to incentivise flood risk reduction and adaptation to climate change is a key challenge.
- While expectations of the insurance industry have traditionally been high when it comes to flood risk management, the insurance industry alone will not provide the solution.
- These risks insurance partnerships can no longer afford to focus only on the risk transfer function.
- The above challenges illustrate the fact that national government and industry together cannot fully address these risks and other actors need to be involved to create strong incentives for risk reduction.
ENHANCE ('Enhancing risk management partnerships for catastrophic natural disasters in Europe') aims at developing and analyzing new ways to enhance society's resilience to catastrophic natural hazard impacts. The hazards are related to hear waves, forest fires, flood, drought, storm surge, and volcanic eruptions.