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Improving Flood Insurance and Flood Risk Management: Insights from St. Louis, Missouri

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Author Info
Kousky, Carolyn () (Resources for the Future)
Kunreuther, Howard C.
Abstract

This paper examines the history of St. Louis, Missouri in coping with flood risk over the past 15 years, with a focus on flood insurance. Six challenges to the continued management of riverine flood risk are identified and discussed. They are (1) many property owners don’t buy flood insurance, (2) people underestimate flood risk, (3) we need better flood maps, (4) we have a “love affair” with levees, (5) flood risk is increasing over time, and (6) we take deep pride in rebuilding after a disaster. Recommendations for how to improve flood risk management in light of these challenges are offered. Focused attention is given to the possibility of long-term flood insurance contracts tied to long-term loans for risk-mitigating activities in overcoming the six challenges.

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Paper provided by Resources For the Future in its series Discussion Papers with number dp-09-07.

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Date of creation: 03 Mar 2009
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Handle: RePEc:rff:dpaper:dp-09-07

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Related research
Keywords: disaster insurance; National Flood Insurance Program; risk; floods;

Find related papers by JEL classification:
Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters
G22 - Financial Economics - - Financial Institutions and Services - - - Insurance; Insurance Companies

This paper has been announced in the following NEP Reports:

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  1. Dwight Jaffee & Howard Kunreuther & Erwann Michel-Kerjan, 2008. "Long Term Insurance (LTI) for Addressing Catastrophe Risk," NBER Working Papers 14210, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  2. Carolyn Kousky & Erzo F.P. Luttmer & Richard J. Zeckhauser, 2006. "Private Investment and Government Protection," NBER Working Papers 12255, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  3. Kydland, Finn E & Prescott, Edward C, 1977. "Rules Rather Than Discretion: The Inconsistency of Optimal Plans," Journal of Political Economy, University of Chicago Press, vol. 85(3), pages 473-91, June. [Downloadable!] (restricted)
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This page was last updated on 2009-11-26.


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