Speaker
Description
Extreme weather events are becoming increasingly frequent due to climate change, causing extensive damage worldwide. The nature and frequency of these events vary regionally; in Belgium, river flooding is among the most significant causes of weather-related damage. To reduce this risk, governments are investing in nature-based solutions (NBS), by introducing flood plains and enhancing infiltration measures. However, current public investment levels remain insufficient, and flooding persists in areas without NBS measures. The literature identifies insurance companies as potential co-investors in NBS, as they can benefit financially from reduced claims through avoided flood damages. This research explores the potential role of insurers in financing flood-mitigating NBS. Using semi-structured interviews with five major national insurance companies and five regional government administrations responsible for flood protection, we examine the barriers and opportunities for insurer participation in NBS investment and outline the conditions needed to foster an investment-friendly environment. From the insurance perspective, we find that regulatory and institutional path dependencies prevent investment in NBS, as investment decisions do not account for avoided damages. From the public administration perspective, however, significant opportunities emerge, particularly when NBS are reframed as infrastructure, a domain in which the Flemish government has experience involving private, including insurance-sector, financing. We conclude that within the current policy framework, existing financial instruments could be leveraged to attract insurer investment in NBS infrastructure. Nevertheless, the prevailing lack of urgency limits insurer engagement to invest in preventive measures, suggesting that targeted regulatory reforms may be required to stimulate action.
| If your abstract is not accepted for an oral presentation, would you be interested in presenting it as a poster instead? | Yes |
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| If accepted by the Scientific Board, I agree to have my presentation/poster and abstract published on the Belgian Climate Centre websites and social media. | Yes |
