Twenty years after the “flood of the century”, the Swiss approach to hazard insurance, based on solidarity, could inspire other countries dealing with increasingly frequent disasters. “The River Aare is now flowing through the alleys of this old part of the city and the water has reached the first floor of many houses.” So began a Swissinfo report from the Matte district in Bern’s Old Town after torrential rains hit central and eastern Switzerland beginning on August 21, 2005. The flood was one of the worst natural disasters in modern Swiss history. Six people died and property damage totalled about CHF3 billion ($3.7 billion), making it the largest insurance payout in Switzerland since 1970. Twenty years later, the banks of the Aare have been partly reinforced, and the Matte district has regained its old charm. The repairs to private property were largely covered by Switzerland’s unique natural disaster insurance programme, which paid out CHF2.3 billion. The risk of another major ...
