Oversvømmelsesforsikringer i Danmark

Abstract

This paper seeks to gather an understanding of the possible reasons, to why the Danish insurance market doesn’t offer any insurances for flooding. The reason for this inquiry, is to propose a national measure to secure the necessary market conditions, which would enable the Danish insurers to offer a flood-insurance to the Danish public. The importance of such a measure is due to last 5-10 years of climate reports, which shows a likelihood of increased frequency of floods, in northern Europe. The paper examines the Danish insurance market, and how other nations have tried to deal with challenges connected with the insurance of damages caused by natural disasters. The paper then seeks to create a new model, with the purpose of creating market conditions, enabling a flood-insurance and in regard to the foreign models, improve on some of the effectiveness critiques laid forth. The paper then examines if the measure is in alignment with EUregulation regarding state aid, and thereby the paper seeks to secure the measures compatibility with the internal market. The economic analysis shows that a number of collected reasons causes the premium of the said flood-insurance to be so inflated, that it causes the collapse of the product-market. The measure of which the legal analysis is based, is there after shown to be state aid, as defined in art. 107, 1 TEUF. The paper then seeks to state if the measure can be declared compatible with the internal market cf. art. 107, 3, c. TEUF The integrated analysis lastly shows that the measure can in fact be compatible with the internal market if the measure is implemented with certain modifications. Therefore, the measure which contains three functions and a fourth extra function, is consisting of functions of information gathering and risk assessment, administration of capital and lastly a foundation for the construction of coastal protection. This measure is furthermore concluded to be effective in creating the market conditions, which is necessary to offer flood-insurance.