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Designing a Flood Management and Insurance System in Hungary: A Model-Based Stakeholder Approach

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Integrated Catastrophe Risk Modeling

Abstract

This chapter describes how an integrated catastrophe model aided a stakeholder policy process focusing on the design of the Hungarian flood insurance system. The process incorporated views on flood insurance held by the public, local authorities, government ministries and private insurers. It was based on extensive interviews, a public survey administered to 400 persons in the risk and non-risk communities and a stakeholder workshop. Stakeholder participation was aided by a catastrophe model that could demonstrate the distribution of future flood losses among the victims, the government and the insurers depending on the design of the insurance pool. The Hungarian stakeholders reached consensus on the design of the national insurance system with all its implications for loss reduction and burden sharing. This pilot study illustrates the use of information technology in a participatory, stakeholder setting, and as such is of interest to all policy makers seeking social consensus for disaster risk management policies.

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Notes

  1. 1.

    The research is based on a project funded by the Swedish Research Council for Environment, Agricultural Sciences and Spatial Planning, and carried out by IIASA, Stockholm University and the Hungarian Academy of Sciences Institute of Sociology.

  2. 2.

    By 2010 this figure had increased to 72% (Vereczki 2010).

  3. 3.

    No private insurance company has offered insurance against the risk of standing water that is not related to riverine flood.

  4. 4.

    This figure includes damages caused by both floods and storms.

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Correspondence to Joanne Linnerooth-Bayer .

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Linnerooth-Bayer, J., Vári, A., Brouwers, L. (2013). Designing a Flood Management and Insurance System in Hungary: A Model-Based Stakeholder Approach. In: Amendola, A., Ermolieva, T., Linnerooth-Bayer, J., Mechler, R. (eds) Integrated Catastrophe Risk Modeling. Advances in Natural and Technological Hazards Research, vol 32. Springer, Dordrecht. https://doi.org/10.1007/978-94-007-2226-2_12

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