5.4 Financial Attributes
Premiums under the Belgian WN are set by insurers on a risk basis. On average they are 12% of
standard fire insurance policies for buildings and contents. This is a similar level to France and other
European countries (Paudel, 2012). The WN pays out based on a formula based on the event and the
premium income from fire cover received by each private insurer.
The annual upper limit is capped at €280 million for flood compensation. There are limits set for each
individual insurer based on their risk exposure to prevent insolvency after severe event. This is termed
the ratio legis. If in a year losses incurred exceed the WN limit the amount paid out per policy will be
reduced on a pro-rata basis (Faure and Bruggeman, 2007). Insurance companies are motivated to
increase capital reserves under the WN with tax-exempt equalisation status (Paudel, 2012).
Bạn đang xem 5. - LET THE MARKETS IN! A QUESTION OF PRIVATE FLOOD INSURANCE IN THE NETHERLANDS?
