Foreword 3

Executive summary 7

1 Assessment and recommendations 9

1.1. A framework for examining government-supported financial protection to respond to large scale catastrophes 10

1.2. Examining the need for government-supported financial protection for natural hazard, infectious disease outbreak and cyber risks 12

1.3. Insurance coverage for wildfire risk 13

1.4. The design of flood risk insurance programmes 14

2 A framework for examining government-supported financial protection to respond to large-scale catastrophes 17

2.1. Introduction 18

2.2. Evaluating the need for government-supported financial protection 19

2.3. Determining the appropriate form of government-supported financial protection 27

2.4. Conclusion 32

References 34

Notes 35

3 Examining the need for government-supported financial protection for natural hazard, cyber and infectious disease risks 37

3.1. Introduction 38

3.2. Evaluating the need for government-provided financial protection 38

3.3. Assessing the adequacy of financial protection 42

3.4. Evaluating the need for government-supported financial protection 47

3.5. Determining the appropriate form of government-supported financial protection 55

3.6. Costs and benefits of insurance market participation 57

3.7. Conclusion 62

References 63

Notes 72

4 Insurance coverage for wildfire risk 77

4.1. Introduction 78

4.2. Property insurance coverage for wildfire risk 81

4.3. Measures to support the availability, affordability and take-up of insurance for wildfire risk 86

4.4. Conclusion 94

References 95

Notes 101

5 The design of flood risk insurance programmes 107

5.1. Introduction 108

5.2. Design features in flood risk insurance programmes 110

5.3. Achieving broad flood insurance coverage 119

5.4. Leveraging market expertise and capacity 130

5.5. Minimising impacts on public finances 137

5.6. Encouraging and supporting flood risk reduction 144

5.7. Conclusions 150

References 152

Notes 161