Review of international flood insurance and recovery mechanisms: Implications for New Zealand and the resilience of older people

Priest, Sally J. ORCID: (2014) Review of international flood insurance and recovery mechanisms: Implications for New Zealand and the resilience of older people. Project Report. Centre for Research Evaluation and Social Assessment, New Zealand. .

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Widely available insurance within a well-functioning and solvent market has the potential to not only assist the recovery from hazard events; but also positively influence mitigation behaviour. However, the characteristics of current flood insurance models and their effectiveness vary considerably between countries. How flood insurance provision is structured, what losses are covered and excluded and how it is purchased all impact upon the effectiveness of the scheme for recovering from flood losses and ultimately how burden sharing is split between the at-risk individual and society.

This study reviews international insurance provision (and compensation schemes) for adverse natural events. Each insurance model is described and its performance for aiding recovery as well as modifying risk behaviour examined. A number of criteria are used to evaluate these models including; degree of insurance penetration, coverage, insurability, equity, incentives for mitigation and impact on market solvency. The review also examines the role of insurance within a broader portfolio of flood and storm management. Recognising the balance between a focus on proactive management and recovery as well as public and private investment is critical to understanding the overall role of insurance within a country and wider lessons that can be drawn. This cultural and flood management context is fundamental to assessing the impact that flood insurance may have on community resilience. Where possible, the review draws on information about insurance trends and other data for the provision of cover for older people; although the availability of data specifically for this group is limited.

Item Type: Monograph (Project Report)
Additional Information: This research was funded by the Ministry of Business, Innovation and Employment as part of the public good science programme Community Resilience and Good Ageing: Doing Better in Bad Times. For further information contact Kay Saville-Smith ( Centre for Research Evaluation & Social Assessment, New Zealand or see
Keywords (uncontrolled): Flooding, Insurance, Compensation, Community Resilience, New Zealand, Natural Hazards
Research Areas: A. > School of Science and Technology > Flood Hazard Research Centre
Item ID: 13939
Notes on copyright: CRESA have indicated that the full text can be submitted to the Middlesex University erepository.
Useful Links:
Depositing User: Sally Priest
Date Deposited: 12 Dec 2014 09:53
Last Modified: 31 May 2019 05:30

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