4.3 ASSESSABILITY THE LIMITS OF INSURABILITY HAVE ALSO BEEN EXTEND...

7.4.3  Assessability  

The limits of insurability have also been extended with the use of new computer driven flood models. For

example, in the UK investment in flood risk models has meant insurers have a better understanding of

the parameters of flooding. Nevertheless, Swiss Re report that despite better models, flood risk is still

often underestimated and can strike in unanticipated ways. It should be appreciated that flood risk is not

static and can change for many different reasons year on year. For example, even in land located away

from flood zones, extreme rainfall and reduced absorption capacity can create conditions for a flash

flood. Of relevance to the Dutch context, Swiss Re conclude that viable flood insurance systems with

affordable risk based premiums will be difficult to achieve in countries without either precise flood

assessment tools or models. These models and tools are both currently underdeveloped in the

Netherlands due to the lack of the insurance industry’s interest in offering mainstream flood insurance.