Dynamic Integrated Flood Insurance (DIFI) model

The DIFI model offers insight in the development of flood insurance premiums, unaffordability and demand for coverage under different flood insurance systems. The model uses climatic and socioeconomic input data from the flood model GLOFRIS. Results show the development of the insurability of flood damage across Europe and what action could be taken to enhance the sustainability of flood insurance markets to climate change. The target group of this tool consists of policy makers, insurance companies and real estate investors.

Benefits of using the tool

The tool offers insight in the insurability of flood risk in Europe. Moreover, the model can be extended to assess the reasons for a potential flood insurance gap: the level of uninsured flood risk. For example, more certainty of government aid after a flood event will reduce flood insurance demand. Outcomes may help policy makers in the stimulation of flood insurance uptake or the implementation of individual flood damage mitigation measures.  

City Hub experiences

The Amsterdam city hub (APG) may benefit from the use of the DIFI tool to distinguish different possibilities for flood insurance based on their real estate investment portfolio and this may guide their investment decisions.  

Triple-A phases and complexity

The tool can be used in the following Triple-A phases: 

Analysis phase: (risk & vulnerability, impact assessments)

Identification of socio-economic tipping points for insurance uptake under climate change.
Insight in the role of the government in crowding out insurance uptake.
Evaluation of insurance market reforms that can improve the capacity of insurance to deal with climate change. 

Overall level of complexity: Level 2 (customized approach

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