06-03-2010

NL: Government decides: no flood insurance

The Dutch government has decided not to introduce a public-private flood insurance in the Netherlands.

In a letter to parliament the government argues it to be not oppertune to introduce such insurance. The idea was to replace the National Disaster Fund (WTS) to partly compensate the damage following flood disasters by introducing a mandatory clause in the fire insurance. Also this would require a financial role of the government. 

Besides inherent limitations, the Dutch government has decided not to increase in the burden of the tax payer, especially in a time of economic crisis.

In a press release, the Dutch Association of insurers have reacted with disappointment on the Government decision. Although with respect for the government decision, the Association of Insurers expect that future flood incidents could lead to a government reconsideration of their decision.

Find the letter from Government to Parliament here. (Dutch)
Find the press release from the Association of Dutch insurers here. (Dutch)