7.5 Chapter Conclusion
The characteristics of the Dutch flood risk compensation, past, present and potential future, have been
explored in some detail in the above chapter. This analysis has compared the conditions for the
introduction and operation of effective private flood insurance based on the output of three national case
studies. While two of the entry conditions are already found to be present in the Netherlands, many
significant entry conditions necessary for the introduction of private flood insurance are absent. There
are also a number of conditions that would become relevant for the effective operation of private flood
insurance once introduced.
Entry conditions currently present:
A Free Market in Flood Insurance
Sufficient Size of Insurance Community
Entry conditions currently absent:
High Public Flood Risk Awareness (Demand)
Removal or Reform of Public Flood Compensation
Political Support
A Standalone National Flood Risk Model
A Strong Independent Regulator
Operational conditions for effective private flood insurance:
An Active Financial Role for Government
Public Reinsurance or State Guarantee
Affordable Basic Coverage
Market Based Incentives to Overcome Adverse Selection
Community Level Mitigation Incentives
Clear Boundaries for Public and Private Sector Responsibility
Based on the preceding analysis of the conditions for the introduction of private flood insurance to the
Netherlands, the next chapter will attempt answer the main research question of this thesis.
74
Bạn đang xem 7. - LET THE MARKETS IN! A QUESTION OF PRIVATE FLOOD INSURANCE IN THE NETHERLANDS?
