Data on Insurance Reported by Researchers at Vrije Universiteit Amsterdam (How the Usa Can Benefit From Risk-based Premiums Combined With Flood Protection): Insurance

2022 NOV 17 (NewsRx) -- By a News Reporter-Staff News Editor at Politics, Law & Government Daily -- Investigators publish new report on Insurance. According to news reporting originating from Amsterdam, Netherlands, by NewsRx correspondents, research stated, “Flood risk management in the USA is largely embedded in the National Flood Insurance Program (NFIP). Climate change and increasing exposure in flood plains pose a challenge to flood risk managers and make it vital to reduce risk in the future.”

Financial supporters for this research include Netherlands Organization for Scientific Research (NWO), European Research Council (ERC).

Our news editors obtained a quote from the research from Vrije Universiteit Amsterdam, “The proposed reforms are steering the NFIP to risk-based premiums, but it is uncertain if the reforms will result in unaffordability and incentivize risk-reduction investments or how the NFIP is affected by large-scale adaptation efforts. Using an agent-based model approach for current and future scenarios, we demonstrate that risk-based premiums will yield a positive societal benefit (US$10 billion) because they will incentivize household risk-reduction investments. Moreover, our results show that proactive investment in large-scale adaptation measures complements a transition to risk-based premiums to yield a higher overall societal benefit (US$26 billion). We suggest that transitioning the NFIP to risk-based premiums can only be secured by additional investments in large-scale flood protection infrastructure. The National Flood Insurance Program is a key tool for managing growing flood risk in the USA.”

According to the news editors, the research concluded: “This research shows that premiums based on local risk, rather than national averages, will generate large societal benefits, and investments in large-scale adaptation infrastructure will enhance these impacts.”

This research has been peer-reviewed.

For more information on this research see: How the Usa Can Benefit From Risk-based Premiums Combined With Flood Protection. Nature Climate Change, 2022. Nature Climate Change can be contacted at: Nature Portfolio, Heidelberger Platz 3, Berlin, 14197, Germany. (Nature Publishing Group - http://www.nature.com/; Nature Climate Change - http://www.nature.com/nclimate/)

The news editors report that additional information may be obtained by contacting Lars T. de Ruig, Vrije Universiteit Amsterdam, Inst Environm Studies Ivm, Amsterdam, Netherlands. Additional authors for this research include Toon Haer, Hans de Moel, W. J. Wouter Botzen, Jeroen C. J. H. Aerts, Samuel D. Brody and Jeffrey Czajkowski.

The direct object identifier (DOI) for that additional information is: https://doi.org/10.1038/s41558-022-01501-7. This DOI is a link to an online electronic document that is either free or for purchase, and can be your direct source for a journal article and its citation.

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