How can flood insurance support holistic flood risk management? A reflection on recent developments and future research needs

Flood insurance can influence risk behaviour and promote a culture of risk management. This is particularly relevant as rising risks due to climate change and growing risk exposure are expected to put further pressure on insurability and affordability of cover. As flood insurance is becoming increasingly unaffordable for those living in high-risk areas, effective risk reduction is expected to play a significant role in maintaining affordability and availability of insurance, but it is unclear how these two approaches interact, or how insurance itself can promote more risk reduction. The chapter provides an overview of research into how flood insurance can support wider flood resilience and risk reduction. Future directions for research are also proposed.