Insurers Respond to Flood Risk

The article discusses the need for creative measures and partnerships to protect properties from the growing frequency and severity of flood events, as traditional insurance is not sufficient. Flood Re has launched an initiative to make homes more flood resilient by offering reimbursement to participating insurers for installing flood resilience measures. Community-based catastrophe insurance (CBCI) is also being used in the US to provide more affordable coverage for families and businesses. Parametric insurance, which covers risks without assessing damage after an event, is gaining traction with respect to weather- and climate-related risks, and improved data tools have increased insurers' comfort covering perils like flood. The article emphasizes the importance of education and collaboration and suggests that insurers should focus on four areas: access data sources, deploy advanced technology, partner with communities, and educate insureds.