Abstract
The design of a public-private flood insurance system is a multi-stakeholder policy problem. The stakeholders include, among others, the public in the high-risk and low-risk areas, the insurance companies and the government. With an understanding of the preferences of the stakeholder groups, decision analysis can be a useful tool in establishing and ranking different policy alternatives. However, the design of a nation-wide insurance system involves handling imprecise information, including estimates of the stakeholders’ utilities, outcome probabilities and importance weightings. This chapter describes a general approach to analysing decision situations under risk involving multiple stakeholders. The approach was employed to assess options for designing a public-private flood insurance and reinsurance system in Hungary with a focus on the Tisza river basin. It complements the actual stakeholder process for this same purpose described in previous chapters of this book. The general method of probabilistic, multi-stakeholder analysis extends the use of utility functions for supporting evaluation of imprecise and uncertain information.
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Notes
- 1.
The scales are from the lowest value to the highest value on the y-axes.
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Danielson, M., Ekenberg, L. (2013). A Risk-Based Decision Analytic Approach to Assessing Multi-stakeholder Policy Problems. In: Amendola, A., Ermolieva, T., Linnerooth-Bayer, J., Mechler, R. (eds) Integrated Catastrophe Risk Modeling. Advances in Natural and Technological Hazards Research, vol 32. Springer, Dordrecht. https://doi.org/10.1007/978-94-007-2226-2_14
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