Insurance Pilot Study

Tender description

We would like to reserve the right to withdraw the PIN/ Early Engagement. We are seeking specific expertise within the market with the potentiality to go out to market via an open process. The Green Finance Team at Environment Agency have secured funding to carry out a pilot study titled 'Monetising Insurance Benefits of Flood Alleviation Schemes' (the Study) to evaluate the insurance-related financial benefits of Flood Alleviation Schemes in England. The Environment Agency seeks to appoint a Consultant to carry out the Study. The Study will evaluate two flood schemes in England viz. Bridgwater Tidal Barrier and Leeds Flood Alleviation Scheme Phase 2. Further information regarding these flood schemes can be found here: Bridgwater Tidal Barrier: https://www.sedgemoor.gov.uk/article/2489/Strategic-Flood-Risk-Documents ; https://www.sedgemoor.gov.uk/bridgwaterbarriertwao Leeds Flood Alleviation Scheme: https://www.leeds.gov.uk/emergencies/flooding-advice/how-were-reducing-the-risk-of-flooding/leeds-flood-alleviation-scheme The Study involves developing evidence base to quantify the financial benefits with a view to develop risk-based approaches to creating new and innovative financial mechanisms and revenue streams. The appointed Consultant will be expected to carry out the following tasks: -Use specialised Natural Catastrophe Modelling (NatCat Models), the baseline and post-intervention flood risk profile. -Use the modelling outputs to develop the technical premium price (pre and post-intervention) using specialised actuarial and underwriting expertise. -Calculate the financial value of value of reduction in flood risk exposure whilst incorporating the impact of future climate change into the analysis -Using the financial value thus calculated, identify beneficiaries and explore financial instruments and mechanisms to capture and monetize the benefits. -Using a project finance approach, the Consultant shall formulate financial model(s) to present the financial benefits of the capital investments including (but not limited to) financial parameters such as internal rate of return, net present value etc. The Consultant shall help the Client to identify and engage with potential investors upon verification of the technical, economic and financial feasibility. The Consultant shall provide knowledge and training to the Client for capacity building on technical, legal and policy matters required to implement the aforementioned financial mechanisms and revenue streams.