(Il)liquid Assets: Risk Management Through Insurance Solutions

(Il)liquid Assets: Risk Management Through Insurance Solutions: A Comparative Analysis of Failure Mechanisms and Premium Evolution of Flood Insurance in the Netherlands

Platzer, Olivier (TU Delft Civil Engineering & Geosciences)

Kok, M. (mentor)
van den Bremer, T.S. (graduation committee)
Brinkman, Timo (graduation committee)

Delft University of Technology

Civil Engineering

2023-11-23

This thesis evaluates flood insurance solutions for the Netherlands, focusing on the repercussions of primary flood defence failures. Recognizing the amplified need for a solid safety system due to climate change, the study uses a comprehensive approach, including literature review, expert opinion, and numerical modelling, to assess existing insurance systems and suggest novel ones. It begins by identifying seven insurance failure mechanisms, vital for appraising potential solutions. International practices are examined for context, and experts from various sectors provide quantitative analysis of these mechanisms on reimbursement schemes. The study proposes seven solutions, narrows them down to four, and constructs an insurance premium model reflecting Dutch housing risks to evaluate the financial implications for homeowners. It then scrutinizes each solution's framework, efficacy, and financial impact. A final reflection considers the preferences of key stakeholders—government, individuals, insurers—and recommends four tailored flood insurance solutions for the Netherlands. The thesis aims to guide policy formulation and enhance the collective understanding of flood insurance management.

Flood Resilience
Insurance
Excel Simulation

http://resolver.tudelft.nl/uuid:d73b4a55-a370-4bb6-a86b-4a8a7caf2ec7

Student theses

master thesis

© 2023 Olivier Platzer