NAture Insurance value:
Assessment and Demonstration
The NAIAD project worked to turn Natural Assurance Schemes into practice: arrangements that capture the insurance value of river systems and put it to work in planning decisions.
NATURE INSURANCE VALUE
Putting the nature insurance value of ecosystems to work offers a substantial reduction in the human and economic costs that floods and drought impose.
NATURE BASED SOLUTIONS
Nature Based Solutions reintroduce natural features and processes into cities, landscapes and seascapes. They also underpin economic growth, employment and well-being.
Graphic Source: European Commission
ABOUT NAIAD 2020
Across nine demonstration sites in Europe, NAIAD turned the insurance value of ecosystems into something water-risk managers could actually use, developing and testing its concepts, tools and applications under one unifying idea: Nature Based Solutions (NBS).
Physical and socio-economic analysis of each demonstration site formed the backbone of the work, backed by detailed modelling and forecasting. Together with the insurance sector, the project set out to establish NBS as a technically sound and financially viable proposition for investors locally and nationally, and above all for insurers themselves.
NAIAD ADDED VALUE
FOR PUBLIC INSTITUTIONS RESPONSIBLE FOR DEVELOPMENT AND IMPLEMENTATION OF MEASURES DEALING WITH DROUGHT OR FLOOD RISKS
- Tested, applicable, sustainable, technically sound and financially viable solutions to flooding and drought risk mitigation,
- Solutions in-line with EU strategic goals on sustainable development, green economy, development with nature, Millennium Development Goals,
- Solutions, opening novel possibilities of public-private partnerships or community-led initiatives and social innovation.
Graphic Source: European Commission
FOR PRIVATE SECTOR, INVESTORS AND INSURANCE COMPANIES
- Increasing knowledge on the causal connection of natural events to environmental and socio-economic damage their mitigation or prevention, leading to,
- Need for new technical, consultancy, financing mechanism in support for their implementation, making it interesting for,
- Insurance sector to further explore the viability of these solutions as part of their insurance business, responding to climate change and changing socio-economics in light of new development paradigms e.g. green economy, cyclic-economy, community-led development.
Graphic Source: Insurance Europe
CONTRIBUTION TO KNOWLEDGE AND SUSTAINABLE DEVELOPMENT
- Several IT tools in support of NBS planning and implementation will be developed/upgraded – most interestingly decision support and visualization tool for NBS planning.
- A deeper understanding of ecosystem dynamics and capacity to use these dynamics as part of mitigation or solution to natural hazards.
- Promotion and demonstration of novel business models and insurance products, that can be replicated.
Graphic Source: European Commission
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