Risk insurance for disasters plays a relevant part in the implementation of risk reduction strategies during the pre-disaster phase. This is essential to support risk management towards decreasing the marginal risk allowing policy holders to transfer risk to avoid considerable financial loads from the costs incurred during the recovery phase in a post-disaster phase. There is evidence that the introduction of an integrated risk insurance strategy for community resilience planning is still lacking. Thus, this undermines the possibility to have proper optimized holistic risk management; on the one hand this strengthens pre-disaster risk mitigation measures, mostly relying on mitigative infrastructural solutions, and on the other hand it better defines risk prevention strategies mostly connected to land planning and urban development. This paper will show how insurance markets can play a key role towards mitigating the economic consequences of natural and climate change disasters, and how essential it is to better quantify the beneficial effects and costs of engineer-based mitigative solutions. In this context, the legal framework into which the actuarial quantitative model can be implemented will support the creation of an integrated multidisciplinary approach with potential implementation on a novel platform capable of collecting and processing information from different sources and dimensions such as blockchain technology. The scientific community is, in fact, increasingly interested in implementing blockchain technology to overcome problems linked to the contractual dimension of natural disaster risk insurance which can be interpreted as a sort of smart contracting. Through a study that involved four distinct areas, namely: law, environmental engineering, insurance and IT, this paper proposes a specific multidisciplinary methodology to achieve the drafting and implementation of a digital insurance contract on a blockchain platform against natural hazards. This paper proposes the basis to advance a quantitative concept to optimize the impact of catastrophe risk insurance onto the community resilience; in fact providing a key synergy for definition of pre-disaster conditions.

The paper aims to provide a clarification of assessing insurance risk related to an asset owned by a subject under public law and, more specifically, to an economic cultural asset. This study is aligned with key aspects proposed by the EU for the protection of the cultural heritage from natural disasters. In the first place, given the peculiarity of the material inherent to cultural heritage, a motivation underlies the search for the correlation between the latter and the commonality. Secondly, it appeared necessary to verify the differences, similarities and importance of the economic management of cultural heritage in order to understand the social, economic, material and intangible importance of an asset managed in an economic way within a social axis (municipality). The third reason relates to the general severity and the risk and subsequent damage that a hazard, such as a pandemic outbreak (COVID-19), can cause on one or more cultural heritage. In the final analysis, perhaps the most meaningful aspect underlies the verification of the possible consequences in the analysis of summations of losses generated by a hazard in order to allow a prospect of what could be the consequences of such a catastrophic scenario.

This work aims to offer a contribution in the analysis and management, from an economic and financial point of view, of the flood risk, and extended to the hydrogeological risk, from the perspective of a public administration. As main responsible actor for containing the phenomenon through the maintenance of the territory, public administration is responsible for the cost of restoring of the services that have been damaged by this type of phenomenon. The assets of which the public administration must ensure the restoration are all public infrastructures (i.e. transportation, energy and water supply system, communication) together with the damage suffered by private property, if these affect services to be guaranteed to the population. In this work, the authors propose possible strategies that a public administration can put in place to deal with flood risk. Three main strategies are analysed: an absolute passivity that provides for the payment of damages as they occur (i.e. business-as-usual scenario), a classic insurance scheme, a resilient and innovative insurance scheme. The economic–financial profiles of these strategies proposed in this work put an emphasis on how the assumption of a time horizon can change the convenience of one strategy compared to the others. This study highlights the key role of the quantification of flood risk mitigation measure from an engineering perspective, and their potential issues to pursue these objectives in connection to the regulatory framework of the public administrations. This synergy is supported by the potential use of Blockchain-based tools. Within the paper is highlighted the key role that such platform IT data management platform could have within risk analysis and management schemes, both as a data collection tool and as certification of the various steps necessary to complete the process.

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It is now well known that the world community must share the risks and hazards deriving from climate change and, more generally, from the environment. At the end of summer 2019, the European Bank for Reconstruction and Development (EBRD) issued the World’s first dedicated climate resilience bond and this confirms the thesis according to which financial, social and economic instruments are always most necessary for the development of society and to avoid that natural hazards can, as occurred in the past, cause extremely heavy damage with negative repercussions on every single area of a community. Starting from the characteristics of resilience bonds and reinsurance, the paper seeks to highlight the potential advantages that would derive from a systematic application of recursive contractual instruments (smart contracts). The authors focused on the study of the projection of financial and quantitative data of resilience and catastrophe bonds on the basis of a determined timeline, a fixed insurance premium, mitigation works related and connected to the main contract (insurance). In particular, the study concerns the correlation of the urban implementation of risk mitigation works with the specific catastrophic flood risk. The paper implements a purely economic and social cost-benefit analysis (ACB) in the sense that includes, among others, a public approach and the goal of maximizing social welfare, according to efficiency economic criteria. In a nutshell, the authors highlight as the main result not only the possibility, but also the convenience of the joint and multidisciplinary application of the quantitative method (resilience bonds) to infrastructure resilience.