Model-based analysis of catastrophe flood risks

Overview

The project studies insurability of flood risks in Rijnmond-Drechtsteden region around Rotterdam, the Netherlands. In the project, the integrated catastrophic risks management model (CRIM) combines a HIS-SSM model (Highwater Information System – Damage and Casualties Module) and stochastic quantile-based optimization procedures to generate scenarios of flood losses and quantify robust insurance policies for flood-prone locations outside main flood defense systems, i.e. dike rings. 

IIASA research

The project develops approaches for designing robust flood-loss sharing programs comprised, e.g., of private flood insurance, central and local governments, and financial instruments. Involvement of governments and introduction of financial instruments increases the demand for the insurance and helps fulfill its liabilities avoiding insolvency. “Robust” defines such a multi-layer insurance program that: 1) fulfills goals and constraints of the involved stakeholders; 2) remains solvent under multiple flood scenarios rather than one (average) event. The project enables exchange of practical and methodological experience between IIASA and DELTARES: IIASA develops novel methodologies and practical approaches for integrated catastrophic risks management, security and robust solutions (Systemic Risks, Security and Robust Solutions project), applied in case studies of catastrophic floods, wind storms, earthquakes, outbreaks of livestock related diseases, etc. DELTARES is involved in practical water management projects such as flood protection (Project for the development of a new test instrumentarium based on flood risk assessment); environment, e.g. water pollution treatment, taxation; etc. Joint research proposes new robust conclusions for policy makers in case study regions.

Last edited: 06 May 2013