VU University Amsterdam Reports Findings in Insurance (An agent-based model for evaluating reforms of the National Flood Insurance Program: A benchmarked model applied to Jamaica Bay, NYC): Insurance

2022 APR 29 (NewsRx) -- By a News Reporter-Staff News Editor at Insurance Daily News -- New research on Insurance is the subject of a report. According to news reporting originating in Amsterdam, Netherlands, by NewsRx journalists, research stated, “Coastal flood risk is expected to increase as a result of climate change effects, such as sea level rise, and socioeconomic growth. To support policymakers in making adaptation decisions, accurate flood risk assessments that account for the influence of complex adaptation processes on the developments of risks are essential.”

Financial support for this research came from Nederlandse Organisatie voor Wetenschappelijk Onderzoek.

The news reporters obtained a quote from the research from VU University Amsterdam, “In this study, we integrate the dynamic adaptive behavior of homeowners within a flood risk modeling framework. Focusing on building-level adaptation and flood insurance, the agent-based model (DYNAMO) is benchmarked with empirical data for New York City, USA. The model simulates the National Flood Insurance Program (NFIP) and frequently proposed reforms to evaluate their effectiveness. The model is applied to a case study of Jamaica Bay, NY. Our results indicate that risk-based premiums can improve insurance penetration rates and the affordability of insurance compared to the baseline NFIP market structure. While a premium discount for disaster risk reduction incentivizes more homeowners to invest in dry-floodproofing measures, it does not significantly improve affordability. A low interest rate loan for financing risk-mitigation investments improves the uptake and affordability of dry-floodproofing measures.”

According to the news reporters, the research concluded: “The benchmark and sensitivity analyses demonstrate how the behavioral component of our model matches empirical data and provides insights into the underlying theories and choices that autonomous agents make.”

This research has been peer-reviewed.

For more information on this research see: An agent-based model for evaluating reforms of the National Flood Insurance Program: A benchmarked model applied to Jamaica Bay, NYC. Risk Analysis, 2022. Risk Analysis can be contacted at: Wiley, 111 River St, Hoboken 07030-5774, NJ, USA. (Wiley-Blackwell - http://www.wiley.com/; Risk Analysis - http://onlinelibrary.wiley.com/journal/10.1111/(ISSN)1539-6924)

Our news correspondents report that additional information may be obtained by contacting Toon Haer, Institute for Environmental Studies, Amsterdam, VU University Amsterdam, Amsterdam, Netherlands. Additional authors for this research include Lars Tjitze de Ruig, Hans de Moel, Philip Orton, W. J. Wouter Botzen and Jeroen C. J. H. Aerts.

The direct object identifier (DOI) for that additional information is: https://doi.org/10.1111/risa.13905. 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.

The publisher of the journal Risk Analysis can be contacted at: Wiley, 111 River St, Hoboken 07030-5774, NJ, USA.

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