Pilot 1
Green roof insurances
Pilot lead: IVM
In this pilot, we study how insurance can stimulate the adoption of urban nature-based solutions, specifically green roofs. The overarching goal is to develop a European business model for insurance that promotes nature-based solutions. The implementation of green roofs is increasing, but still scarce, even though they provide a range of aesthetic, biodiversity, and recreational benefits in addition to various climate change adaptation and mitigation benefits, such as water management or insulation.
We start with cities in the Netherlands. Our partners IVM and CAS will evaluate a climate adaptation strategy implemented by the Dutch insurer Interpolis, which aims to encourage policyholders to adopt green roofs. Furthermore, a broad range of societal benefits of green roofs will be assessed in surveys that include discrete choice experiments among Dutch residents. Based on the assessed benefits, cost-benefit analyses of green roofs will be performed, including flood risk reduction, recreation, and biodiversity benefits. The effectiveness of different insurance solutions to promote green roofs, in addition to possible enablers and barriers, will be examined as well. Moreover, public-private partnerships will be identified to investigate sustainable finance arrangements that stimulate investments in green roofs.
The pilot also seeks to explore whether similar approaches can be applied in insurance markets beyond the Netherlands. During the later innovation rounds, we will explore the applicability of green roofs as an adaptation measure promoted by insurers in the Boreal region, in cities such as Helsinki and Tampere in Finland. Finally, the costs and benefits of green roofs as an adaptation strategy are further quantified and tested, which will focus on the Mediterranean region.