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Promoting resilient economies by exploring insurance potential for facing coastal flooding and erosion: evidence from Italy, Spain, France and United Kingdom

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Listed:
  • Osiel Gonz�lez D�vila
  • Mavra Stithou
  • Gianluca Pescaroli
  • Luca Pietrantoni
  • Phoebe Koundouri
  • Pedro D�az-Simal
  • B�n�dicte Rulleau
  • Nabil Touli
  • Fran�ois Hissel
  • Edmund Penning-Rowsell

Abstract

Insurance against natural perils such as flooding can be considered a significant element in coastal management. It can offer not only much-needed support to accelerate economic and social recovery following a disaster (coastal resilience) but also contribute to impact limitation by using pricing or restrictions on availability of coverage to discourage new development in hazard-prone areas. Insurance can affect the redistribution of damage costs across the population and through time, both in the short and long term. Policies of damage reduction are linked to mitigation measures for the properties (old or new buildings) by changing the depth-damage relationship while the long-run risk impacts could affect the overall damage function by discouraging new buildings in high risk areas. This paper will provide an overview of the main theoretical perspectives on insurance in flood risk management. Four different European contexts will be analysed. Data are derived from surveys and interviews conducted in France, United Kingdom, Italy and Spain.

Suggested Citation

  • Osiel Gonz�lez D�vila & Mavra Stithou & Gianluca Pescaroli & Luca Pietrantoni & Phoebe Koundouri & Pedro D�az-Simal & B�n�dicte Rulleau & Nabil Touli & Fran�ois Hissel & Edmund Penning-Rowsell, 2013. "Promoting resilient economies by exploring insurance potential for facing coastal flooding and erosion: evidence from Italy, Spain, France and United Kingdom," GRI Working Papers 127, Grantham Research Institute on Climate Change and the Environment.
    • Handle: RePEc:lsg:lsgwps:wp127
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    References listed on IDEAS

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    1. Botzen, W.J.W. & Aerts, J.C.J.H. & van den Bergh, J.C.J.M., 2009. "Willingness of homeowners to mitigate climate risk through insurance," Ecological Economics, Elsevier, vol. 68(8-9), pages 2265-2277, June.
    2. Howard Kunreuther & Mark Pauly, 2006. "Rules rather than discretion: Lessons from Hurricane Katrina," Journal of Risk and Uncertainty, Springer, vol. 33(1), pages 101-116, September.
    3. Howard Kunreuther & Mark Pauly, 2006. "Rules Rather Than Discretion: Lessons from Hurricane Katrina," NBER Working Papers 12503, National Bureau of Economic Research, Inc.
    4. David Crichton, 2008. "Role of Insurance in Reducing Flood Risk," The Geneva Papers on Risk and Insurance - Issues and Practice, Palgrave Macmillan;The Geneva Association, vol. 33(1), pages 117-132, January.
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    Cited by:

    1. Valente, Donatella & Miglietta, Pier Paolo & Porrini, Donatella & Pasimeni, Maria Rita & Zurlini, Giovanni & Petrosillo, Irene, 2019. "A first analysis on the need to integrate ecological aspects into financial insurance," Ecological Modelling, Elsevier, vol. 392(C), pages 117-127.

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