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.
Fit for Purpose and Fit for the Future? An Evaluation of the UK’s New Flood Reinsurance Pool
This paper evaluates the UK’s “Flood Re” program, including the roles of the public and private sectors, risk modeling and risk communication, technical underwriting, distributional aspects, and behavioral implications of the program.
Working Paper by Swenja Surminski — Feb. 15, 2017Download
Issue Brief — Feb 15, 2017
What Can the United States Learn from the United Kingdom’s New Flood Reinsurance Pool?
The UK’s new Flood Re program has supported the private flood insurance market, but also demonstrates that flood insurance cannot be kept affordable without a concerted effort to reduce the underlying risk.
Press Release — Feb 18, 2020
New Episode of Resources Radio: "On the Job with Florida’s First Chief Resilience Officer, Julia Nesheiwat"
Julia Nesheiwat explains how she is approaching Florida’s complex climate challenges in her role as the state’s first-ever chief resilience officer.
Press Release — Feb 11, 2020
New Episode of Resources Radio: "Going Deeper on NEPA, with J.B. Ruhl"
J.B. Ruhl explains the nuances of the National Environmental Policy Act (NEPA) and predicts how proposed rule changes could affect its implementation.