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NAture Insurance value: Assessment and Demonstration

Periodic Reporting for period 1 - NAIAD (NAture Insurance value: Assessment and Demonstration)

Reporting period: 2016-12-01 to 2018-05-31

NAIAD (Nature Insurance Value: Assessment and Demonstration) is a European H2020 project (started in December 2016) dedicated, to demonstrate the interest of Nature Based Solutions to reduce water-related risks (floods & droughts) specifically extreme-water-related disasters. The project aims to operationalize the concept of nature insurance value recognizing the contribution of ecosystems to society’s resilience to water risks. The goal is (i) to develop an interdisciplinary methodology to assess the insurance value of Nature Based Solutions and their co-benefits and (ii) to demonstrate this insurance value in 9 demonstration sites characterized by different scales and geographical contexts and (iii) explore relevant operational implementation models including instruments as well as financial options that could guarantee the development of NBS s. The assessment approach includes biophysical (hydrological, hydrogeological) models or methods as well as social sciences assessment methods to inform the relevance of Nature Assessment Schemes their vulnerability and long-term sustainability.

The insurance value is the avoided damages enabled by the NBS (against a reference situation: less protection or grey alternative) and the value of the sustained capacity of ecosystems to maintain their functioning and production of benefits despite any disturbance”. However, ecosystems protect but are also vulnerable to storms, wildfires, diseases, climate change, etc. Specific management operations might increase their resilience. NAIAD aims to bring evidence of the ecosystem protection roles, provide integrated hazard assessment methods, include social risk perception and preferences (to elucidate non-market benefits), and tailor innovative business models and financial options to build on the insurance value of ecosystems.
The overall common vision of NAIAD Project has been defined by NAIAD partners, the members of NAIAD Advisory Panels and external experts in the multi-disciplines present at NAIAD.

A robust assessment framework to measure the insurance value of NBS is in development, it builds on biophysical assessment options and economic assessment that will take the form of a Multi-criteria-analysis. The ecosystems functionality in the different Demonstration cases (at small, medium and large scales) has been completed and scale-tailored models are being developed that eventually will be integrated, together with the methodologies co-developed with local stakeholders in two tools: i) an eco: engine platform designed for the insurance and financial actors will enable the integration of physical system knowledge from project partners into a single web application to analyse these systems spatially for baseline and scenario conditions; ii) An open-web platform capable of combining many types of biophysical, social, economic and Climate data and model into an effective policy support system, providing insurance value assessment to specific stakeholders and policymakers.

The links between ecosystems values and social risk perception have been studied through collaborative local stakeholders workshops developed in the 9 Demonstration sites focussed on risk perception, problem definition and NBS assessment.

The Europe insurance systems and Nature Assurance Schemes have been characterized in a survey developed at Europe level, covering 11 countries. Infographics explaining the particular insurances schemes operating in each of these countries has been published on NAIAD website ( It enables to anticipate the potential roles of the insurance industry in the development of Nature Based Solutions.

The First Policy Roundtable took place in Spain during the KoM and in Stockholm, during the World Water Week 2017. An initial characterization of drivers and barriers for operationalization and the mapping of policy frameworks and market scoping on instruments and Business models. The means of verification is the publication of the minutes of the First Policy Roundtable into NAIAD website.

The Initial results from scientific work packages have been published in public deliverables available at NAIAD website (
Over the first half of the project, NAIAD consortium has concentrated on the science of understanding Nature Based Solutions and their contribution to mitigation of insurance risk in a variety of contexts as demonstrated by our DEMO sites. The second half will then look deeper into the business and policy implications and mechanisms for realising the value of NBS, working with stakeholders from around and beyond the EU. NAIAD claims for an integrated approach in resilience building, in which the local community will play a crucial role.

NAIAD already reached a set of stakeholders through local workshops at NAIAD Demonstration sites and side events bringing together experts from key sectors, as insurers, public managers and policy makers. Additional initiatives took place to increase the empowerment of all these actors and NAIAD consortium in the implementation of Nature Based Solutions as a natural insurance value, as thematic workshops, bilateral meetings, and attendant to specific conferences on key topics.

These activities have enabled to communicate the project objectives and results, increasing awareness about disaster risk reduction, climate change and the potential role of the NBS and its impact in local areas. After the complexion of the first stakeholder’s workshop, out of three, the trust and support from the local stakeholders has increased, based on the response of the participants/attendance to the events or calls made afterwards.

During the first period of the project new links and partnerships with other NBS projects have been done (ESMERALDA, other EU Projects as BRIGAID, DANUBE Floodplain, CROSSLINK, NATURvation, THINKNATURE, UrbanGreenUp, FAST DANUBE) and existing ones have been strengthen.
An outstanding stakeholder engagement is being developed in the context of NAIAD project. This network can provide a number of benefits, not only for research and researchers, but also for stakeholders and wider society. These benefits include can include: increased empowerment, improved links and partnerships, access to additional resources or information, endorsement for an approach or decision, better communication, awareness, trust and support, improved learning through sharing of experiences.

A robust stakeholder engagement can assist in managing risks and reducing conflict by identifying barriers, limitations and potential negative outcomes before they occur. Well-managed engagement activities can facilitate learning, build trust between participants and help mediate conflicts.
Ultimately, successful stakeholder engagement can assist in making research more credible, relevant and legitimate, therefore improving its impact, and leading to better outcomes for both biodiversity and society.
NAIAD Consortium (KoM, January 2017)