Floods are among the most common and devastating natural hazard-induced disasters, particularly in vulnerable regional areas. This exploratory study examines the introduction of a flood insurance scheme in regional contexts, focusing on the case of Kampar District, Riau, Indonesia. It will explore the socioeconomic and geographical factors influencing the potential success of an insurance scheme, taking into account the characteristics of the community. Utilizing a mixed-methods approach, including quantitative data analysis from questionnaire and qualitative interviews with stakeholders, the research investigates the current state of local government’s flood risk management, the community awareness and preparedness, and the business related to risk disaster’s insurance. The study reveals the challenges and opportunities associated with the feasibility in implementing a flood insurance scheme, considering factors such as disaster risk perception, institutional capacity, community engagement, and willingness to pay in insurance scheme. Findings suggest that while certain barriers exist, such as limited financial resources and lack of awareness, there is potential for improving the role of local stakeholders for a well-designed flood insurance scheme to enhance regional resilience and recovery. The study contributes to the broader discourse on disaster risk reduction and mitigating the potential impact of floods in developing regions. Further research and collaboration are recommended to refine the proposed flood insurance framework and address the identified obstacles for effective implementation in regional settings.