This was a closed session, hence, no video recording is available. This article provides an overview of the discussion.
On March 21, 2025, the SOTERIA Community of Practice (CoP) held its second session to explore innovative insurance solutions for public and private buildings. The discussion focused on key challenges such as low insurance penetration, decision-making factors in insurance development, and risk communication strategies.
The Gabrovo team (BES, DZI) opened the session by presenting their roadmap for identifying the best insurance solution for the Gabrovo case study (CS). They examined key barriers to insurance adoption, including low risk awareness, affordability concerns, cultural factors, and mistrust in insurers. To tackle these challenges, they proposed behavioral strategies, highlighting the need for awareness campaigns developed in partnership with insurers and local authorities. They also discussed the difficulties of implementing a risk-based premium system that accounts for risk reduction measures, particularly due to the lack of granular data.
Sina from UFZ, leader of the Saxonian CS, then shared her ongoing research results on behavioral aspects of insurance adoption. She highlighted the significant impact of psychological factors on insurance decisions, particularly how risk communication shapes perceptions. She suggested, for example, presenting cumulative probability (e.g., a 20% risk over 25 years) instead of annual probability. She also emphasized the benefits of bundled multi-risk insurance over single-hazard coverage.
Additionally, Sina introduced insights from Saxony’s flood certificate program, a tool designed to help property owners assess and document their buildings’ flood risk and preparedness. The certificate provides information on flood hazards, recommends preventive measures, and demonstrates a property’s resilience. Insurers can use this tool to adjust premiums, reinforcing the connection between risk assessment and pricing. This approach could be valuable for the Gabrovo team, prompting further exploration of how a similar system could be implemented. Sina also provided recommendations for improving the flood certificate program.
Overall, the session underscored the importance of behavioral strategies, effective communication, and collaboration in increasing insurance adoption. The insights from Saxony’s experience offer valuable best practices for Gabrovo CS to consider.