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My name is Reimund Schwarze from
the European
University Viadrina,
which is a small countryside
university in the vicinity of Berlin
where I'm teaching mostly
insurance economics,
or what is called Economics
of Natural Hazard
to students of business
and management.
I've been doing this
for almost 20 years
and I'm reporting
in my talk about
20 years of experience in
Flood Insurance in Europe.
I will use, as a case
study for my talk,
Switzerland, which has
within itself two systems.
I will explain this in my talk.
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What are the forces at work that
make systems more or less efficient?
I use the example of Switzerland
not only because it's the most
efficient in terms of my analysis,
but also because it's very clear
in identifying those forces
that make natural hazard
insurance more efficient.
In fact, in Switzerland,
in terms of FINH insurance
or transfer system,
is a combination of two regions.
The pale green one
is the so-called
Kantonale
Gebäudeversicherungen or
the Household Insurance
at the Canton level,
mostly in the northern
part of Switzerland.
19 of those Cantons or
regions of Switzerland have
a compulsory insurance-based
on a non-profit
regional monopoly.
In terms of our terminology,
we introduced M1.
It's practically a public
body that insures,
but at the same time,
it's in charge of prevention
and fire protection.
You may think of it as
being the fire brigades
under the same roof as
the insurance for fire.
The dark green
regions or Cantons,
there are actually only seven,
have a private insurance scheme
where fire brigades are obviously not
under the same roof as fire insurance
but they have
compulsory insurance
or some form of compulsory
bundling of insurances.
They have some
form of regulation
but a mild one compared to M1.
