Public-private partnership is the key to successfully mitigating against natural catastrophes, according to Flood Re CEO Brendan McCarthy.

He told last week’s Baden-Baden Reinsurance Symposium that the launch in April of the UK Government-backed Flood Re scheme shows how the public sector and (re)insurers can collaborate.

“Flood Re is a successful working example of how risk transfer from government and the retail insurance sector to the global reinsurance markets can underpin the delivery of an insurance solution for hundreds of thousands of consumers in need of insurance protection,” he told the event in Germany, which was hosted by Guy Carpenter.

“Flood Re demonstrates that where there’s a will there’s a way, and complex and sensitive issues can be dealt with when policymakers are open-minded to innovative solutions.

“Flood Re has taken the concept of national catastrophe pools and created a solution that benefits policyholders every day, not just when the worst happens.”

Swiss Re Global Partnerships Chairman Martyn Parker says insurers play an increasingly important role helping communities prepare for and recover from natural disasters.

Since 2011 the Swiss reinsurer has had a dedicated team exploring public sector business.

“Pioneering work is always tough at the outset, but we’ve built a considerable track record and learned a great deal,” Mr Parker said. “The role insurance plays as a partner to governments and public sector entities is building, particularly when it comes to providing intelligent contingency financing for catastrophe events.

“Ultimately, insurance supports governments to manage risk resilience and fiscal planning, enabling them to save lives and protect infrastructure, limiting damage to their entire economy.”