@article{Hudson2018, author = {Hudson, Paul}, title = {A comparison of definitions of affordability for flood risk adaption measures}, series = {Mitigation and adaptation strategies for global change : an international journal devoted to scientific, engineering, socio-economic and policy responses to environmental change}, volume = {23}, journal = {Mitigation and adaptation strategies for global change : an international journal devoted to scientific, engineering, socio-economic and policy responses to environmental change}, number = {7}, publisher = {Springer}, address = {Dordrecht}, issn = {1381-2386}, doi = {10.1007/s11027-017-9769-5}, pages = {1019 -- 1038}, year = {2018}, abstract = {Risk-based insurance is a commonly proposed and discussed flood risk adaptation mechanism in policy debates across the world such as in the United Kingdom and the United States of America. However, both risk-based premiums and growing risk pose increasing difficulties for insurance to remain affordable. An empirical concept of affordability is required as the affordability of adaption strategies is an important concern for policymakers, yet such a concept is not often examined. Therefore, a robust metric with a commonly acceptable affordability threshold is required. A robust metric allows for a previously normative concept to be quantified in monetary terms, and in this way, the metric is rendered more suitable for integration into public policy debates. This paper investigates the degree to which risk-based flood insurance premiums are unaffordable in Europe. In addition, this paper compares the outcomes generated by three different definitions of unaffordability in order to investigate the most robust definition. In doing so, the residual income definition was found to be the least sensitive to changes in the threshold. While this paper focuses on Europe, the selected definition can be employed elsewhere in the world and across adaption measures in order to develop a common metric for indicating the potential unaffordability problem.}, language = {en} } @article{UnterbergerHudsonBotzenetal.2018, author = {Unterberger, Christian and Hudson, Paul and Botzen, W. J. Wouter and Schroeer, Katharina and Steininger, Karl W.}, title = {Future public sector flood risk and risk sharing arrangements}, series = {Ecological economics}, volume = {156}, journal = {Ecological economics}, publisher = {Elsevier}, address = {Amsterdam}, issn = {0921-8009}, doi = {10.1016/j.ecolecon.2018.09.019}, pages = {153 -- 163}, year = {2018}, abstract = {Climate change, along with socio-economic development, will increase the economic impacts of floods. While the factors that influence flood risk to private property have been extensively studied, the risk that natural disasters pose to public infrastructure and the resulting implications on public sector budgets, have received less attention. We address this gap by developing a two-staged model framework, which first assesses the flood risk to public infrastructure in Austria. Combining exposure and vulnerability information at the building level with inundation maps, we project an increase in riverine flood damage, which progressively burdens public budgets. Second, the risk estimates are integrated into an insurance model, which analyzes three different compensation arrangements in terms of the monetary burden they place on future governments' budgets and the respective volatility of payments. Formalized insurance compensation arrangements offer incentives for risk reduction measures, which lower the burden on public budgets by reducing the vulnerability of buildings that are exposed to flooding. They also significantly reduce the volatility of payments and thereby improve the predictability of flood damage expenditures. These features indicate that more formalized insurance arrangements are an improvement over the purely public compensation arrangement currently in place in Austria.}, language = {en} } @article{RoderHudsonTaroili2019, author = {Roder, Giulia and Hudson, Paul and Taroili, Paolo}, title = {Flood risk perceptions and the willingness to pay for flood insurance in the Veneto region of Italy}, series = {International Journal of Disaster Risk Reduction}, volume = {37}, journal = {International Journal of Disaster Risk Reduction}, publisher = {Elsevier}, address = {Amsterdam}, issn = {2212-4209}, doi = {10.1016/j.ijdrr.2019.101172}, pages = {10}, year = {2019}, abstract = {The floodplain of the Veneto region (north-east Italy) is one of the most inhabited and economically competitive urban landscapes in Europe. Moreover, recent flood events have caused millions of Euros in damage across the region. Due to the combined influence of climate change and socio-economic development, flood impacts are expected to grow. Therefore, it is important for all flood-prone individuals to actively manage and limit flood risk through property-level flood risk management as part of an integrated flood risk management strategy. This is in line with the calls for wider community engagement in risk management in the Sendai Framework for Disaster Risk Reduction and the Sustainable Development Goals. Therefore, an online-survey of Veneto region residents was conducted asking questions regarding flood risk perceptions, preparedness, and preferences towards flood insurance via self-stated willingness to pay (WTP). Our analysis provides an initial indication that while flood risk knowledge is high, it may not be sufficient to encourage proactive risk management. From the WTP values provided people seem reluctant to buy insurance. However, many respondents expressed that a compulsory insurance system may be acceptable. In such a scheme the estimated insurance premium could fall to between (sic)26 and (sic)42 per year, as compared to, potentially, (sic)800 under risk-based premiums, which falls within the majority of WTP estimates provided ((sic)0-(sic)250). Overall, we identify areas of future research that are critical for the better design of risk management policies, supporting the insurance companies in risk management and for recommendations regarding property-level risk management.}, language = {en} } @article{HudsonBotzenAerts2019, author = {Hudson, Paul and Botzen, W. J. Wouter and Aerts, Jeroen C. J. H.}, title = {Flood insurance arrangements in the European Union for future flood risk under climate and socioeconomic change}, series = {Global environmental change : human and policy dimensions}, volume = {58}, journal = {Global environmental change : human and policy dimensions}, publisher = {Elsevier}, address = {Oxford}, issn = {0959-3780}, doi = {10.1016/j.gloenvcha.2019.101966}, pages = {13}, year = {2019}, abstract = {Flood risk will increase in many areas around the world due to climate change and increase in economic exposure. This implies that adequate flood insurance schemes are needed to adapt to increasing flood risk and to minimise welfare losses for households in flood-prone areas. Flood insurance markets may need reform to offer sufficient and affordable financial protection and incentives for risk reduction. Here, we present the results of a study that aims to evaluate the ability of flood insurance arrangements in Europe to cope with trends in flood risk, using criteria that encompass common elements of the policy debate on flood insurance reform. We show that the average risk-based flood insurance premium could double between 2015 and 2055 in the absence of more risk reduction by households exposed to flooding. We show that part of the expected future increase in flood risk could be limited by flood insurance mechanisms that better incentivise risk reduction by policyholders, which lowers vulnerability. The affordability of flood insurance can be improved by introducing the key features of public-private partnerships (PPPs), which include public reinsurance, limited premium cross-subsidisation between low- and high-risk households, and incentives for policyholder-level risk reduction. These findings were evaluated in a comprehensive sensitivity analysis and support ongoing reforms in Europe and abroad that move towards risk-based premiums and link insurance with risk reduction, strengthen purchase requirements, and engage in multi-stakeholder partnerships.}, language = {en} } @article{ThiekenCammererDobleretal.2016, author = {Thieken, Annegret and Cammerer, Holger and Dobler, Christian and Lammel, Johannes and Schoeberl, Fritz}, title = {Estimating changes in flood risks and benefits of non-structural adaptation strategies - a case study from Tyrol, Austria}, series = {Mitigation and adaptation strategies for global change : an international journal devoted to scientific, engineering, socio-economic and policy responses to environmental change}, volume = {21}, journal = {Mitigation and adaptation strategies for global change : an international journal devoted to scientific, engineering, socio-economic and policy responses to environmental change}, publisher = {Springer}, address = {Dordrecht}, issn = {1381-2386}, doi = {10.1007/s11027-014-9602-3}, pages = {343 -- 376}, year = {2016}, abstract = {Flood damage has increased significantly and is expected to rise further in many parts of the world. For assessing potential changes in flood risk, this paper presents an integrated model chain quantifying flood hazards and losses while considering climate and land use changes. In the case study region, risk estimates for the present and the near future illustrate that changes in flood risk by 2030 are relatively low compared to historic periods. While the impact of climate change on the flood hazard and risk by 2030 is slight or negligible, strong urbanisation associated with economic growth contributes to a remarkable increase in flood risk. Therefore, it is recommended to frequently consider land use scenarios and economic developments when assessing future flood risks. Further, an adapted and sustainable risk management is necessary to encounter rising flood losses, in which non-structural measures are becoming more and more important. The case study demonstrates that adaptation by non-structural measures such as stricter land use regulations or enhancement of private precaution is capable of reducing flood risk by around 30 \%. Ignoring flood risks, in contrast, always leads to further increasing losses-with our assumptions by 17 \%. These findings underline that private precaution and land use regulation could be taken into account as low cost adaptation strategies to global climate change in many flood prone areas. Since such measures reduce flood risk regardless of climate or land use changes, they can also be recommended as no-regret measures.}, language = {en} } @article{CammererThiekenVerburg2013, author = {Cammerer, Holger and Thieken, Annegret and Verburg, Peter H.}, title = {Spatio-temporal dynamics in the flood exposure due to land use changes in the Alpine Lech Valley in Tyrol (Austria)}, series = {Natural hazards : journal of the International Society for the Prevention and Mitigation of Natural Hazards}, volume = {68}, journal = {Natural hazards : journal of the International Society for the Prevention and Mitigation of Natural Hazards}, number = {3}, publisher = {Springer}, address = {New York}, issn = {0921-030X}, doi = {10.1007/s11069-012-0280-8}, pages = {1243 -- 1270}, year = {2013}, abstract = {Flood risk is expected to increase in many regions of the world in the next decades with rising flood losses as a consequence. First and foremost, it can be attributed to the expansion of settlement and industrial areas into flood plains and the resulting accumulation of assets. For a future-oriented and a more robust flood risk management, it is therefore of importance not only to estimate potential impacts of climate change on the flood hazard, but also to analyze the spatio-temporal dynamics of flood exposure due to land use changes. In this study, carried out in the Alpine Lech Valley in Tyrol (Austria), various land use scenarios until 2030 were developed by means of a spatially explicit land use model, national spatial planning scenarios and current spatial policies. The combination of the simulated land use patterns with different inundation scenarios enabled us to derive statements about possible future changes in flood-exposed built-up areas. The results indicate that the potential assets at risk depend very much on the selected socioeconomic scenario. The important conditions affecting the potential assets at risk that differ between the scenarios are the demand for new built-up areas as well as on the types of conversions allowed to provide the necessary areas at certain locations. The range of potential changes in flood-exposed residential areas varies from no further change in the most moderate scenario 'Overall Risk' to 119 \% increase in the most extreme scenario 'Overall Growth' (under current spatial policy) and 159 \% increase when disregarding current building restrictions.}, language = {en} }