Review of international flood insurance and recovery mechanisms: Implications for New Zealand and the resilience of older people - research summary

Widely available insurance within a well-functioning and solvent market has the potential to not only assist the recovery from hazard events; but also positively influence mitigation behaviour. However, the characteristics of current flood insurance models and their effectiveness vary considerably between countries. How flood insurance provision is structured, what losses are covered and excluded and how it is purchased all impact upon the effectiveness of the scheme for recovering from flood losses and ultimately how burden sharing is split between the at-risk individual and society. This study reviews international insurance provision (and compensation schemes) for adverse natural events. The key findings from this work are provided in this research summary which accompanies the full review document

Flood risk research for improving flood risk outcomes

Editoria

Review of international flood insurance and recovery mechanisms: Implications for New Zealand and the resilience of older people

Widely available insurance within a well-functioning and solvent market has the potential to not only assist the recovery from hazard events; but also positively influence mitigation behaviour. However, the characteristics of current flood insurance models and their effectiveness vary considerably between countries. How flood insurance provision is structured, what losses are covered and excluded and how it is purchased all impact upon the effectiveness of the scheme for recovering from flood losses and ultimately how burden sharing is split between the at-risk individual and society. This study reviews international insurance provision (and compensation schemes) for adverse natural events. Each insurance model is described and its performance for aiding recovery as well as modifying risk behaviour examined. A number of criteria are used to evaluate these models including; degree of insurance penetration, coverage, insurability, equity, incentives for mitigation and impact on market solvency. The review also examines the role of insurance within a broader portfolio of flood and storm management. Recognising the balance between a focus on proactive management and recovery as well as public and private investment is critical to understanding the overall role of insurance within a country and wider lessons that can be drawn. This cultural and flood management context is fundamental to assessing the impact that flood insurance may have on community resilience. Where possible, the review draws on information about insurance trends and other data for the provision of cover for older people; although the availability of data specifically for this group is limited

Why understanding behaviour matters for flood risk management? Journal of Flood Risk Management, 14 (2) , e12724. ISSN 1753-318X

In her Editorial of June 2020, Burrell Montz touched upon many of the parallels between managing the global pandemic and flood risk management. Over the recent months, I have also been struck by many of the similarities, particularly in relation to the role of individual decision-making and consequently the behavioural response of those at risk. When watching the recent and ongoing news about the COVID-19 crisis and the actions of us all over these difficult months, I have been reminded of how the impact of human behaviour and our decisions matter for both our individual and collective outcomes. We are all having to make decisions every day about our exposure to risks and behavioural actions we may take to mitigate them (e.g., should I go to the supermarket later in the day as it is less busy? Should I drive to my destination, rather than take public transport? When it is best I wear a mask? Should I accept a vaccine if offered?). The behavioural response of those at risk of flooding can also be of critical importance to both individual and community impact and is a key theme running through many of the papers in this special issue. [...

Partnership Funding in flood risk management: multi-level stakeholder engagement - a question of roles and power

The paper examines the new flood risk policy discussion in England and Wales. The summer floods in England in 2007 caused large damages to the environment, economy and humanity. Following this key flood event, the Government has started to redefine the national flood and coastal risk management policy in England and Wales. The key issue in the new policy agenda is to encourage the responsibilities of local authorities and reduce the central role of flood risk management. This decentralisation in flood risk management has a series of consequences in the development of new governance structures. The main reason for this shift from central to local level is the belief that local authorities deal with public administration tasks in a more efficient way. Nevertheless, the main problem is the gap between the delegated tasks and the lack of transfer of resources, especially the issue concerning funding is still unclear and unresolved. This constraint will go with fiscal and administration cuts. The consequences will be (1) ‘hollowing out’ of the Government with the downscaling of the responsibility towards local actors and (2) without proportional transfer of resources to local authorities they will not be able to deal with new tasks. Therefore, in practice there are many limitations, barriers and concerns with the new policy direction

Partnership funding in flood risk management: new localism debate and policy in England

The new flood risk policy discussion in England has started to redefine national policy regarding flood and coastal risk management. The key issue in the new policy agenda is to encourage the responsibilities of local authorities in flood risk management, which involve defining local strategies to manage local risks. This downscaling process in flood risk management has a series of consequences in the development of new governance structures and institutions as well as new working relations and intervention strategies. Nevertheless, the main problem is the gap between the downscaling of responsibility and the transfer of resources; in particular the question concerning funding and social capacity. In this way, the focus of policy discussion refers to two main aspects: (a) the equitable sharing of risk-burdens between public authorities, private companies and individuals and (b) how to encourage government agencies and nongovernment agents to take over responsibility for certain tasks from central government. The aim of this paper is to discuss the new funding regime for English flood risk management policy under the new policy paradigm

Towards evaluation criteria in participatory flood risk management

Flood risk consists of complex and dynamic problems, whose management calls for innovative ways of engaging with a wide range of local stakeholders, many of whom lack the technical expertise to engage with traditional flood risk management practices. Participatory approaches offer potential for involving these stakeholders in decision-making, yet limited advice is available to users in choosing which techniques to employ and what they might expect them to deliver. Assessing the effectiveness of participatory approaches in local flood risk management is a critical step towards better understanding how community resilience is built. This paper presents a framework for evaluating participatory approaches to flood risk management that covers four evaluation elements (context, process, substantive and social outcomes). Practical success criteria are provided for evaluation, with references indicating where further advice and guidance can be sought. Criteria are tailored to the requirements of flood risk management, and aim to be sufficiently flexible for the framework to be easily transferable

Sharing the burden of adapting to increasing flood risk: who pays for flood insurance and flood risk management investment in the United Kingdom

Many countries are exploring alternative strategies to counter rising flood risk as there is concern at the extra burden that such increasing risk will bring. The aim of this paper is to explore the nature of these burdens, and outline responses in the United Kingdom where both the government and the private flood insurers have new policies and proposals. Our method is to collate the extensive existing authoritative data and information - from government and the insurance industry - about the risks that are being experienced and the related policy responses. The results show that these seek to concentrate somewhat more the financial burden of, respectively, flood risk management costs and insurance provisions on to those who are at risk and away from the general taxpayer and those who pay insurance premiums. Other countries may well learn from these developments. The pre-existing cross-subsidies are being reduced and, in this way, it is hoped that extra resources for risk management investment will be forthcoming (from local contributions from at-risk communities) and flood insurance will remain affordable, available and commercially viable. A key conclusion here is that it appears that any increase in flood frequency and severity in the UK appears likely to affect the financially deprived communities to a greater extent than others, not least because they are less likely to insure. Government arrangements to prioritise their contribution to risk reducing towards these financially deprived communities is a sign that this regressive effect of floods is real and serious, and those arrangements are to be welcomed

Evolving interregional co-operation in flood risk management: distances and types of partnership approaches in Austria

Flood risk management and policy in Europe are changing, so the role of local and catchment-wide flood risk management plans are now key contemporary issues in flood policy. A new policy agenda is to enhance inter-local solutions instead of local flood alleviation schemes. This paper analyses the new role of those local authorities and stakeholders in flood risk management as well as how the nature of the partnerships are established and operate, focusing especially on the main barriers and challenges. This paper examines catchment-based flood risk management in Austria. Catchment-based flood risk management was analysed in three different Austrian regions (Aist in Upper Austria, Triesting-Tal in Lower Austria and Ill-Walgau in Vorarlberg). The current functions of a partnership approach in flood risk prevention lie within the selection of sites for conservation of regionally important retention areas, harmonising spatial planning instruments and awareness-raising for protective measures on an inter-local level. The empirical results are currently characterized by a lack of sufficient co-operation between the members as well as with the regional authorities. The three case studies show different backgrounds and developments. The results show that the inter-local co-operation process is in no cases fully achieved. Some of the case studies show a higher integration in one field than others