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There is a high potential for recovery mechanisms to be used to incentivise the uptake of flood mitigation and loss reduction measures, undertake adaptation and promote community resilience. Indeed, creating a resilient response to flooding requires flood risk management approaches to be aligned and it needs to be ensured that recovery mechanisms to not provide disincentives for individuals and business to take proactive action to reduce risk. However, the degree to which it is desirable and effective for insurers and governments providing compensation to promote resilience and risk reduction depends upon how the cover or compensation is organised and the premiums which are charged. A review of international flood recovery mechanisms has been undertaken to identify firstly the types of schemes that exist and their characteristics. Analysis of existing instruments highlights that there are various potential approaches to encourage or require the uptake of flood mitigation and also discourage the construction of new development in high flood risk. However despite the presence of these instruments, those organising recovery mechanisms could be doing much more to incentivise increased resilience

Promoting adaptive flood risk management: the role and potential of flood recovery mechanisms