The Role of Market-Based Flood Insurance in Maintaining Communities at Risk of Flooding: A SWOT Analysis

Lamond, Jessica E.

Abstract

© 2014 John Wiley & Sons, Ltd. All rights reserved. Flood insurance can be seen as an alternative to massively increased investment in harder flood risk management measures, as it has the potential to mitigate the effects of flooding and maintain communities in the floodplain. Governments are increasingly considering the role of market-based insurance schemes, which is the focus of this chapter, as part of their flood risk management policy. Common features of the market schemes are that private insurance companies provide cover directly to property owners or occupiers. The chapter examines the strengths and weaknesses of market-based insurance with reference to extant market-based systems of flood insurance. It also considers the opportunities and threats for future flood risk insurance, as identified from the strengths and weaknesses and by insurers and reinsurers that are scoping the future of catastrophe risk finance, to provide food for thought about the possible interventions that can be most successful in reducing future risk.

• Online Publication Date: Mar 21, 2014
• Publication Date: May 5, 2014
• Deposit Date: Oct 4, 2019
• Pages: 258-270
• DOI: https://doi.org/10.1002/9781118809167.ch20
• Public URL: https://uwe-repository.worktribe.com/output/3501109