The UK insurance market has struggled to find a viable solution to the challenge of providing cover to properties at high risk of flood. As Flood Re slowly emerges from theory to reality, across Europe insurance markets and governments are struggling to come to terms with the growing threat from natural catastrophes.
This was the theme of a recent International Insurance Conference in Munich which vividly demonstrated how serious the challenge is and how, in many countries, pooled insurance arrangements already enjoy levels of government support that would make ministers in the UK wince.
In this article, David Worsfold studies why it’s time for a new approach to nat cat.
• Does the UK need a pool arrangement?
• Science offers solutions.
• Global protection gap.
• Four market responses to nat cats.
• Comparison of flood insurance schemes.