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

Swenja Surminski
Additional contact information
Swenja Surminski: Grantham Research Institute for Climate Change and the Environment, London School of Economics

RFF Working Paper Series from Resources for the Future

Abstract: Flood Re is widely hailed as an innovative approach to disaster risk insurance. This paper offers a mixed-methods evaluation of the new pool, asking whether it is “fit for purpose” and “fit for the future.” The investigation considers the roles of the public and private sectors, risk modelling and risk communication, technical underwriting, distributional aspects and the behavioural implications of Flood Re, particularly with regards to risk reduction and prevention. The paper concludes that the new pool is a transitional reinsurance arrangement that supports the private insurance market and secures affordability of flood insurance in the UK through premium subsidies. However, this approach is likely to come under pressure in the face of rising flood risk as it fails to incentivize flood risk management and risk reduction efforts.

Keywords: Flood Re; flood risk management; reinsurance (search for similar items in EconPapers)
Date: 2017-02-15
References: Add references at CitEc
Citations:

Downloads: (external link)
http://www.rff.org/RFF/documents/RFF-DP-17-04.pdf (application/pdf)
Our link check indicates that this URL is bad, the error code is: 404 Not Found (http://www.rff.org/RFF/documents/RFF-DP-17-04.pdf [301 Moved Permanently]--> https://www.rff.org/RFF/documents/RFF-DP-17-04.pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:rff:dpaper:dp-17-04

Access Statistics for this paper

More papers in RFF Working Paper Series from Resources for the Future Contact information at EDIRC.
Bibliographic data for series maintained by Resources for the Future ().