Articles | Volume 18, issue 9
https://doi.org/10.5194/nhess-18-2409-2018
https://doi.org/10.5194/nhess-18-2409-2018
Research article
 | 
14 Sep 2018
Research article |  | 14 Sep 2018

Insurance engagement in flood risk reduction – examples from household and business insurance in developed countries

Isabel Seifert-Dähnn

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Cited articles

Aerts, J. C. J. H. and Botzen, W. J. W.: Flood-resilient waterfront development in New York City: Bridging flood insurance, building codes, and flood zoning, Ann. NY Acad. Sci., 1227, 1–82, https://doi.org/10.1111/j.1749-6632.2011.06074.x, 2011. 
Alfieri, L., Feyen, L., and Di Baldassarre, G.: Increasing flood risk under climate change: a pan-European assessment of the benefits of four adaptation strategies, Clim. Change, 136, 507–521, https://doi.org/10.1007/s10584-016-1641-1, 2016. 
Atreya, A., Hanger, S., Kunreuther, H., Linnerooth-Bayer, J., and Michel-Kerjan, E.: A comparison of residential flood insurance markets in 25 countries, available at: http://opim.wharton.upenn.edu/risk/library/WP2015_FloodInsurancePrograms-25Countries_2015-06-28.pdf (last access: 23 November 2017), 2015. 
Banhalmi-Zakar, Z., Ware, D., Edwards, I., Kelly, K., Becken, S., and Cox, R.: Mechanisms to finance climate change adaptation in Australia, National Climate Change Adaptation Research Facility, Gold Coast, 2016. 
Botzen, W. J. W. and van den Bergh, J. C. J. M.: Risk attitudes to low-probability climate change risks: WTP for flood insurance, J. Econ. Behav. Organ., 82, 151–166, https://doi.org/10.1016/j.jebo.2012.01.005, 2012. 
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Short summary
Insurance is suggested to be an important mechanism to boost flood risk reduction, especially at an individual level. This study shows how insurers in developed countries are engaged in flood risk reduction and under which conditions (insurance scheme, market penetration). Insurers in public insurance schemes seem to be more proactive when it comes to flood risk reduction. Surprisingly, risk-based pricing is seldom practiced, even though it is heavily argued for in the academic literature.
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