Investigation of The Economic Effects of Increasing Buildings Insurance Coverage in Flash Floods Affected by Climate Change Using Systems Dynamics (Case Study: Emamzadeh Davood Region)

Articles in Press

Document Type : Original Article

Authors

1 Associate professor, Water science and eng. group, IKIU,

2 Water Engineering Department, Faculty of Agriculture and Natural Resources, Imam Khomeini International University, Qazvin, Iran

10.22034/iwrr.2023.181865

Abstract

Climate change has increased the frequency and intensity of flash floods in recent years, making Iran one of the most vulnerable countries in the world to natural disasters. Flash floods have caused significant economic and social damage in urban areas, highlighting the need for effective measures to assess and compensate for losses. Flood insurance is an important tool to reduce economic pressure and tension between the people and the government by compensating for losses in a timely and appropriate manner. However, the issue of flood insurance is complex and requires a systemic approach to address economic and social concerns. This study evaluates the effect of flood insurance coverage on economic and social variables in the Emamzadeh Davood region using Vensim PLE software. The study investigates the changes in economic vulnerability, buildings covered by insurance, insurance company's income, and people's prosperity under four different scenarios. The role of insurance compensation and government subsidy in reducing economic vulnerability and social consequences was also analyzed. Results indicate that if the government provides a subsidy of 35% of the premium and insurance companies compensate 100% of the damage, all residents in the studied area will buy flood insurance for their homes by 2050. This study highlights the importance of flood insurance in reducing the economic and social impact of flash floods and provides insights into the effective implementation of flood insurance policies.

Keywords

Main Subjects

Iran-Water Resources Research

Articles in Press, Accepted Manuscript
Available Online from 26 October 2023

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History

  • Receive Date: 16 July 2023
  • Revise Date: 07 October 2023
  • Accept Date: 26 October 2023

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