Foreign Approaches to Cover Uninsurable Risks Offering Opportunities for the Czech Insurance Market

Uninsurable risks belong to actual issues of insurance industry. These risks weaken the role of commercial insurance. Insurers make exceptions in coverage of excessive claims. Property, health and lives are excluded from protection of commercial insurance products. In order to look for an effective solution of uninsurable risk we have focused our interest in uninsurable risk of flood, which is significant non-life insurance risk in the Czech Republic. Main aim is to describe multi-sourcing system based on cooperation between the state, insurers and insured objects. The system as a result of the research includes features of foreign approaches to uninsurable flood risk and is adjusted according to specific conditions of the Czech insurance market. Foreign approaches of uninsurable flood risk have determined the opportunities for the Czech insurance industry and have made a contribution to define the multi-sourcing system.