Please note that this inaugural lecture will be held in Dutch

While water-management authorities mainly focus on prevention, insurers concentrate on compensating for damages. Both sectors use risk analyses that combine data on the likelihood and impact of potential floods caused by dike breaches or heavy rainfall. However, they do this from different perspectives: the water authority looks at how water systems function, while the insurer looks at their portfolio. Insurers also pay particular attention to extreme events, as these determine the amount of capital they must hold to ensure they can pay out claims when disasters occur.

Overestimation of Risks

Solidarity and efficiency are important values in both domains. However, using flood risk data in the financial sector requires a different approach than in water management; overestimating risks can lead to unnecessarily high costs. A case study for the Netherlands illustrates how risks are evolving due to climate change and what adaptation options are available.

Collaboration between water-management authorities and insurers enhances the value of risk analyses and helps distribute costs fairly among the government, insurers, citizens, and businesses.

Bas Kolen, Professor of Enterprise Risk Management: Verzekerd van klimaatrisico's (Insured against climate risks).