Findings on Insurance Reported by Investigators at Vrije Universiteit Amsterdam (Climate-proofing the National Flood Insurance Program): Insurance

2022 NOV 23 (NewsRx) -- By a News Reporter-Staff News Editor at Politics, Law & Government Daily -- Research findings on Insurance are discussed in a new report. According to news reporting out of Amsterdam, Netherlands, by NewsRx editors, research stated, “Reforms are required to maintain a healthy and robust flood insurance market under future climate conditions for the United States. Therefore, policymakers should implement premiums that reflect flood risk and incentivize household-level risk reduction, complemented with regional flood adaptation investments.”

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

Our news journalists obtained a quote from the research from Vrije Universiteit Amsterdam, “Messages for policy Charging flood insurance premiums that reflect true flood risk incentivizes flood risk reduction by policyholders, thereby reducing residential flood risk across the United States moving forward in time. Risk-based premiums introduce substantial heterogeneity in premiums at a localized flood risk scale, which is beneficial for some households but implies unaffordability for others. The combined effects from introducing risk-based premiums to incentivize individual building risk reduction results in a positive societal impact. Complementing risk-based premiums with large-scale, regional adaptation investments by the government results in the highest societal benefit.”

According to the news editors, the research concluded: “Investing in flood protection infrastructure will reduce some of the equity issues that arise when solely moving to risk-based premiums.”

This research has been peer-reviewed.

For more information on this research see: Climate-proofing the National Flood Insurance Program. 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/)

Our news journalists 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/s41558-022-01502-6. 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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