Over recent years, there has been advocacy in Australia for a government-sponsored insurance scheme. This is founded on a fear that insurance premiums might become unaffordable, as insurers are increasingly able to assess risks down to street address levels. While there is no evidence that this is occurring, Risk Frontiers with colleagues from Aon Benfield reviewed the provision of catastrophe insurance in the US, France, New Zealand, Spain, the United Kingdom, and its absence in the Netherlands, where flood risk is viewed as a national security concern. In short we found ourselves agreeing with American researchers, who concluded:
Any well run catastrophe insurance programme is going to end up looking much like an equivalent private market.