Natural perils insurance and compensation arrangements in six countries

This study has made an assessment of the allocation of public sector responsibility for climate change adaptation among key agencies in Norway, Sweden, Finland, Germany, France and Canada. The report presents the various natural perils insurance and compensation schemes in operation in these countries with the aim of revealing the extent to which emphasis is placed on incentives to implement preventive measures in preference to building restoration. Focus has been directed on natural hazards compensation and insurance schemes, and the extent to which these provide incentives to implement preventive measures as opposed to the restoration of buildings and infrastructure after incidents have occurred. The schemes vary from country to country both in terms of the types of losses that are covered and the causes of losses for which compensation is awarded. Some insurance schemes are private, while others are semi-voluntary or based on private-public collaborations. Current schemes provide only limited incentives for prevention because they normally only cover the restoration of buildings to their original standard. The incorporation of building regulations and guidelines into insurance contracts may help to boost levels of adaptation, but current initiatives do not appear to provide adequate incentives. The results of this study are important to actors such as Finance Norway, which is working to develop the Norwegian regulations going forward.