Flood insurance depends on risk partnership

In a separate report, Swiss Re addresses the topical issue of how to provide cover for flooding in high-risk countries, arguing that a risk partnership between insureds, insurers and government is needed. Superficially at least, leaving the state to handle the issue alone has its attractions, but this system means ‘the burden cannot be shared until after the event has happened, and the parties involved are subject to severe time pressure when the disaster has struck,’ says Swiss Re. Allocating financial aid to those who need it is difficult, and there are often delays in helping those who most need assistance. And government aid always involves a heavier tax burden on the country as a whole.