Is flood insurance feasible? Experiences from the People's Republic of China

This working paper is based on the report of a study focused on the feasibility of flood insurance. It examines a major upgrading of flood defense systems through the Hunan Hilly Regions Flood Management Sector Project. The study was intended to provide advice to the Hunan government and help it in making policy decisions on the provision of flood insurance after completion of the project in the different municipalities and counties.

One major objective of the project involves providing protection by 2010 against a 20-year average return in 27 county-level cities, against a 50-year average return in 6 municipal-level cities, and against a 100-year average return in 3 larger municipal-level cities.