Financial Relations in Flood Insurance: US Experience, use in Russia

Abstract

A flood is a natural disaster that threatens the economy through the damage caused. Establishing an effective financial mechanism for assessing damage and providing flood insurance is becoming increasingly important. An analysis of the financial relationships between government and insurance organizations in the field of US insurance, related directly to the management system in flood-prone areas, allows us to develop recommendations for building an effective flood insurance system in Russia. Research into the costing of the US national flood insurance program and the appropriate level of subsidies for existing properties in high-risk flood areas is part of the scientific study of the interaction between insurance and government funding. The article provides an overview of the mechanism for the distribution of financial resources in areas prone to flooding. Proposals are presented regarding the creation of an effective flood insurance system in Russia, which will ensure the coordination of actions of various levels of government, scientifically grounded zoning in flooded areas, as well as the establishment of compulsory insurance of social, housing, and communal facilities in flood-prone areas.