Fit for Purpose and Fit for the Future? An Evaluation of the UK's New Flood Reinsurance Pool

Surminski, Swenja

doi:10.1111/rmir.12093

Cited by 37 publications

(38 citation statements)

References 30 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…The evaluation criteria are based on the debate surrounding flood insurance mechanisms in the household (or private property) insurance market for extreme weather events, with a focus on flooding, as collected through a literature review. We derived the criteria from the perspective of a policymaker because disaster insurance is a public policy choice that aims to fulfil certain risk management objectives (42,43) . To investigate these objectives, the documents listed below were consulted, and we reviewed the consultation documents surrounding the European Commission's Green Paper on the Insurance of Natural and Man-made Disasters (that were published in English).…”

Section: Si811 Evaluation Criteria: Literature-based Developmentmentioning

confidence: 99%

“…On the contrary, the UK has an informal mandate to buy insurance due to lender requirements (26) , which would place the UK in M2 or M6, but premiums are capped due to Flood Re (72) . Moreover, Flood Re has a quasi-governmental framework to support the provision of indemnity payments in the case of extreme events (42) . Together these features place the UK in M6.…”

Section: Si812 Evaluation Criteria: Supplementary Check By Stakeholmentioning

confidence: 99%

“…A similar approach was adopted for the countries in the semi-voluntary market structure (including the UK pre-flood Re) (for example, 26,42,[76][77][78] . These references revealed that between 75% and 100% of households are covered by flood insurance.…”

Section: Si812 Evaluation Criteria: Supplementary Check By Stakeholmentioning

confidence: 99%

See 2 more Smart Citations

Flood insurance arrangements in the European Union for future flood risk under climate and socioeconomic change

Hudson

Botzen

Aerts

2019

Global Environmental Change

View full text Add to dashboard Cite

Established in 1985, the Wharton Risk Management and Decision Processes Center develops and promotes effective corporate and public policies for low-probability events with potentially catastrophic consequences through the integration of risk assessment, and risk perception with risk management strategies. Natural disasters, technological hazards, and national and international security issues (e.g., terrorism risk insurance markets, protection of critical infrastructure, global security) are among the extreme events that are the focus of the Center's research. The Risk Center's neutrality allows it to undertake large-scale projects in conjunction with other researchers and organizations in the public and private sectors. Building on the disciplines of economics, decision sciences, finance, insurance, marketing and psychology, the Center supports and undertakes field and experimental studies of risk and uncertainty to better understand how individuals and organizations make choices under conditions of risk and uncertainty. Risk Center research also investigates the effectiveness of strategies such as risk communication, information sharing, incentive systems, insurance, regulation and public-private collaborations at a national and international scale. From these findings, the Wharton Risk Center's research team-over 50 faculty, fellows and doctoral students-is able to design new approaches to enable individuals and organizations to make better decisions regarding risk under various regulatory and market conditions.

show abstract

Section: Si811 Evaluation Criteria: Literature-based Developmentmentioning

confidence: 99%

Section: Si812 Evaluation Criteria: Supplementary Check By Stakeholmentioning

confidence: 99%

See 1 more Smart Citation

Flood insurance arrangements in the European Union for future flood risk under climate and socioeconomic change

Hudson

Botzen

Aerts

2019

Global Environmental Change

View full text Add to dashboard Cite

show abstract

“…In this context, citizens and property owners are considered to have a fundamental role. For example, the UK's private flood risk insurance system appeals to individuals being aware of their flood risk and taking action to protect their property [32,33]. The summer floods of 2007 proved to be a determining event.…”

Section: Flood Risk Governance In the Ukmentioning

confidence: 99%

“…The UK's private flood risk insurance system requires individuals to be aware of their own flood probability and impact, and act accordingly by protecting and insuring their property [32,33]. In this context, the availability and transparency of local flood risk information for citizens becomes critical (indicator 2.1 information availability and 2.2 information transparency).…”

Section: Flood Probability and Impactmentioning

confidence: 99%

Assessing the Capacity to Govern Flood Risk in Cities and the Role of Contextual Factors

et al. 2018

View full text Add to dashboard Cite

Sea level rise and increased storm events urge cities to develop governance capacity. However, a cohesive conceptual and empirical-based understanding of what governance capacity implies, how to measure it, and what cities can learn, is largely lacking. Understanding the influence of context is critical to address this issue. Accordingly, we aim to identify crosscutting contextual factors and how they prioritise different elements of governance capacity to address urban flood risk. In doing so, a framework of nine conditions and 27 indicators is applied in two Dutch cities and two cities in the United Kingdom. Three crosscutting contextual factors are identified that may explain differences in capacity-development priorities: (1) flood probability and impact; (2) national imposed institutional setting; and, (3) level of authority to secure long-term financial support. Capacity-priorities include, the recent political devolution in the UK, which emphasizes the role of citizen awareness, stakeholder engagement, entrepreneurial agents, and the overall necessity for local capacity-development. The Dutch focus on flood safety through centralised public coordination reduces flood probability but inhibits incentives to reduce flood impacts and lowers public awareness. In conclusion, the three identified contextual factors enable a better understanding of capacity-building priorities and may facilitate learning between cities.

show abstract

Promoting flood risk reduction: The role of insurance in Germany and England

Surminski

Thieken

2017

Earth's Future

Self Cite

View full text Add to dashboard Cite

Improving society's ability to prepare for, respond to and recover from flooding requires integrated, anticipatory flood risk management (FRM). However, most countries still focus their efforts on responding to flooding events if and when they occur rather than addressing their current and future vulnerability to flooding. Flood insurance is one mechanism that could promote a more ex ante approach to risk by supporting risk reduction activities. This paper uses an adapted version of Easton's System Theory to investigate the role of insurance for FRM in Germany and England. We introduce an anticipatory FRM framework, which allows flood insurance to be considered as part of a broader policy field. We analyze if and how flood insurance can catalyze a change toward a more anticipatory approach to FRM. In particular we consider insurance's role in influencing five key components of anticipatory FRM: risk knowledge, prevention through better planning, property‐level protection measures, structural protection and preparedness (for response). We find that in both countries FRM is still a reactive, event‐driven process, while anticipatory FRM remains underdeveloped. Collaboration between insurers and FRM decision‐makers has already been successful, for example in improving risk knowledge and awareness, while in other areas insurance acts as a disincentive for more risk reduction action. In both countries there is evidence that insurance can play a significant role in encouraging anticipatory FRM, but this remains underutilized. Effective collaboration between insurers and government should not be seen as a cost, but as an investment to secure future insurability through flood resilience.

show abstract

Fit for Purpose and Fit for the Future? An Evaluation of the UK's New Flood Reinsurance Pool

Cited by 37 publications

References 30 publications

Flood insurance arrangements in the European Union for future flood risk under climate and socioeconomic change

Flood insurance arrangements in the European Union for future flood risk under climate and socioeconomic change

Assessing the Capacity to Govern Flood Risk in Cities and the Role of Contextual Factors

Promoting flood risk reduction: The role of insurance in Germany and England

Contact Info

Product

Resources

About