3.4 INCREASING DEMAND FOR FLOOD INSURANCE IN THE NETHERLANDS...

8.3.4  Increasing  Demand  for  Flood  Insurance  in  the  Netherlands  

Reversing the general low interest in flood insurance among the Dutch is therefore a commercially

desirable condition for private insurers to sell flood insurance in the Netherlands. As with other natural

disasters, demand for insurance peaks dramatically following a severe incident. Then typically it tapers

off over time until the next incident reminds people why taking out that particular type of insurance

might be a prudent investment. Unfortunately, for the private flood insurance sector at least, there have

been no very serious floods since the 1953 Great North Sea flood. Data is surprisingly difficult to locate,

but according to Watervragen (2013) there have been seven notable flood events and a small handful

of ‘near misses’ when people were evacuated but the dike held. No data could found on possible

smaller floods.

Dike

Sea Floods River

Rain

Breaches

Floods

1953 1984

1960

1998

(Maas)

(Tuindorp)

1993

2003

(Wilnis)

1995

(Rhine)

Total

1 3 2 1

Incidents

Table 4: Floods in the Netherlands since 1953 (Watervragen, 2013)

Notwithstanding the overall cost of the damage these floods inflicted, for a country that is as exposed to

flood risks as the Netherlands, it is impossible to dispute that this is a very low number. Extensive

public investments in flood protection infrastructure and water management expertise in general are

behind this impressive track record. That the Dutch today have a low perception of flood risk is not

surprising. If demand for private flood insurance is to increase the Dutch public will either have to be

exposed to far more flooding or, as is suggested by (Botzen, 2010) encouraged into purchasing flood

insurance through public or private informational campaigns that inform them of the risks they face from

the spectre of pending climate change. Such public informational campaigns have met with limited

78  

success and are reported to have little impact due to a lack of personal connection to the main

messages being put across (EP, 2013).