0 SOCIAL SOLIDARITY KEY CONCEPT

6.0 SOCIAL SOLIDARITY

Key Concept:

Research suggests that people tend not to purchase insurance against low-probability and high-severity

events (Joint Research Centre). This is referred to risk myopia. The low uptake of flood insurance in low-

income populations when flood insurance is not mandatory is marked.

Q6.1) Are there alternative flood insurance products (e.g. different terms and conditions) for insured

parties on low incomes who have few choices for whom flood insurance would be economically not

viable (and hence reduce penetration and flood insurance penetration)?

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