Gaps in the Iceland Risk Transfer Scenarios
Despite Iceland's high level of seismicity, there are still gaps in the current risk transfer scenarios against earthquakes in terms of recovery and stabilizing the country. These gaps can include:
- Insufficient insurance coverage: Many individuals and businesses in Iceland may not have adequate insurance coverage for earthquakes, which can make it difficult for them to recover from damage caused by earthquakes. This can also put a strain on the government, as they may have to provide financial assistance to those without adequate insurance.
- Limited risk transfer options: Many financial institutions in Iceland may not offer earthquake insurance or other risk transfer options, making it difficult for individuals and businesses to protect themselves against the financial risks associated with earthquakes.
- Lack of data and information: There may be a lack of data and information available on the financial risks associated with earthquakes in Iceland, which can make it difficult for insurance companies and other financial institutions to assess and manage those risks.
- Limited international support: Iceland may not have access to the same level of international support and assistance that other countries have in the event of a major earthquake, which can make it more difficult for the country to recover from the damage caused by earthquakes.
- Limited risk management strategies: There may be a lack of effective risk management strategies in place for earthquakes, which can make it more difficult for individuals, businesses, and the government to prepare for and respond to earthquakes.
To address these gaps, Iceland can focus on increasing insurance coverage, expanding risk transfer options, improving data and information availability, seeking international support, and developing effective risk management strategies. This can help to improve the country's ability to recover from and stabilize after an earthquake.