Public-Private Sector Partnerships

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Sustainable insurance solutions for climate risk requires a joint effort of both the public and the private sector: the partners need to cooperate and commit to facilitating a development process. Private insurance companies design appropriate insurance products, establish administrative processes and carry the risk. They invest financial and human resources and commit themselves to the agricultural and climate risk insurance markets. Government support that goes beyond creating an enabling regulatory environment can be critical to the sustainability of such systems.
Partners for Action (P4A) research identified three conditions for flood insurance success in Canada: that Canadians are aware of their risk; that decision makers consider flood risk in planning and policy decisions; and that mechanisms exist for risk transfer following personal risk reduction. These conditions have been supported by all levels of government (federal, provincial, municipal, and indigenous), business, and the non-governmental sector, particularly support towards raising awareness amongst homeowners.