Stephen Bainbridge suggests OutSourcing with CostPlus contracts. I think that could work if there were essentially different contracts for steady/maintenance/prevention activities vs per-disaster projects...
The Economist notes although federal flood insurance was both subsidised and supposedly obligatory for most mortgage holders, remarkably few people on the Gulf had federal cover (for Hurricane Katrina): less than a fifth along Mississippi's coast and only 40% in New Orleans. People bet that iif a Hurri Cane struck, the government would bail them out. In California, for the same reason, only one in five homes is insured against Earth Quake-s.
Edited: | Tweet this!