6.2.8 The Future
Going forward, the France and Belgium are likely to retain their mixed public-private flood
compensation systems. There are small reforms planned in both countries to introduce more market
orientated flood risk mitigation incentives. In Belgium this takes the form of more freedom for risk based
premium setting and price competition among private insurance companies. In France, there is a
reform bill to propose limited risk-based premium pricing for the insurance of large businesses and local
governments. At the community level there are also plans to increase incentives for risk prevention
through the CCR plans. The French reform bill has, however, been criticised by the World Bank (2012)
as not including any disciplinary device and for lacking adequate tools for monitoring and enforcement.
Figure 2: Future Direction of National Flood Insurance Systems (DEFRA1, 2013) The UK is going through of systemic change however. Like most national flood insurance systems it too
is moving towards introducing a greater role for government (as the above chart highlights). The UK
government is ideologically committed to attempt to maintain the as much of its free market attributes
as possible. Given the social welfare problems that have arisen around unaffordable insurance
premiums and lack of willingness by the private insurance industry to continue to offer flood insurance
regardless the number of times of property has been flooded in the past, the government has been
forced to intervene.
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