Impacts of climate change on flood insurance arrangements in the EU
Flood risk is expected to increase in many regions in the EU as a result of a combination of climate change and socio-economic development in flood-prone areas. Increasing flood risk has implications for flood insurance, such as premiums, affordability of coverage, and the market penetration. In this talk, we discuss results from a partial-equilibrium model of the impacts of climate change on the various flood insurance arrangements that exist in the EU and evaluate the need for insurance reforms to cope with climate change. Finally, the macroeconomic implications of different types of private, public, or public-private flood insurance systems are assessed.