News


News


developed a scenario model to quantify the losses from a flood in Colorado following record rainfall in the US state. A stretch of prolonged heavy rainfall in September


2013 spawned major flash flooding across north- eastern sections of the state that caused nine deaths and damaged or destroyed a minimum of 17,983 homes and 968 commercial properties, according to the Colorado Office of Emergency Management. In response, Impact Forecasting is using a new


that ultimately covered by the


them understand the inland flooding peril, Sherry Thomas, managing director


mpact Forecasting, the catastrophe model development centre at Aon Benfield, has


of cat


management with the broker, told PCI Today. While coastal flooding is better documented


and understood, information on inland flooding can be scant. But moves to privatise a peril been


has federal


government for a long time has sparked a wave on interest from the insurance sector. “Private insurers are asking what it would be


scenario model to help the insurance industry better understand the risk from future floods. Based on a USGS (US Geological Survey) digital elevation model (DEM), the model can analyse insurance portfolios either across the state of Colorado at a 100-meter


like to take on private inland flood risk. There is a lot of curiosity out there and insurers are looking at it as a potential way to expand their premium base,” Thomas said. “People are trying to see how they can become


uy Carpenter is actively engaged with a number of


leading insurers in helping


comfortable with the models that are available. We can help by providing model suitability analysis and turning clients into smarter risk takers.” For the private market


to cover


inland flood, insurers must feel comfortable with insuring that peril. “If you look at inland flood, it’s


TUESDA 21.10.1327.10.15


A tool to grasp flood risk in Colorado I


Sherry Thomas


not been well studied and if you want large market participation then you need to provide raw data,” Thomas added. She said the recently released GC


resolution; or by focusing on the five cities that experienced most damage at a more detailed 30-meter resolution. These cities were Boulder, Longmont, Fort Collins, Greeley and Colorado Springs. The record levels of rainfall were a key input into the model, which was developed by Impact


AdvantagePoint, a portfolio and risk management platform, will help manage this peril. “It transforms massive amounts of data into actionable strategy,” said Thomas. GC AdvantagePoint is designed to help insurance companies translate vast amounts of


Guy Carpenter seeks comfort on inland flooding G


Forecasting’s research and development team in Chicago. This was recorded by USGS’s network of stream gauges located along many rivers throughout Colorado’s Front Range, specifically the South Platte and Upper Arkansas watersheds. The model uses a two-dimensional finite volume-based numerical model to simulate flood inundation depth. “The scope of damage and the overall scale of


impacts make this the costliest flood in Colorado’s history, and the first such event to cause more than $1.0 billion in uninflated economic damages in the state,” said Siamak Daneshvaran, head of research and development at Impact Forecasting. “The new scenario model is part of Impact


data to help leaders set strategy and improve underwriting profitability, understand risk concentration and make more informed risk selection and deliver real-time catastrophe tracking and improved claims management. But for all the advancements in the platforms and models used by the


industry, there are always perils that are not so well understood. As to how far away the industry was in developing


a model for cyber risk, Thomas said: “If the industry thought it was hard work building natural perils models, cyber represents a whole different ball game. “I’m anxious for cyber models to become a


Forecasting’s US river flood probabilistic model and will help insurers gauge the financial impact and probability of this event’s potential recurrence.” n


mainstay in the business but this is an incredible task given all the complications of building a cyber model.” n


MONDAY


Weston: for when the wind blows


Weston Insurance Company is a focused wind-only property insurance specialist, providing coverage for losses from the perils of windstorm or hail. Based in Coral Gables, Florida, Weston is dedicated to helping businesses and individuals achieve financial security by providing access to cost-effective coverage, and responsive, high- quality client service. Building on our executive team’s nearly 100 years of collective experience in insurance and reinsurance, Weston strives to offer the most consistent and cost-effective wind-only insurance protection available in the markets we serve.


For more information, please visit us online at www.weston-ins.com or call 1.(888).800.5002


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