Thought for the week… not just flood-focused
Flooding is one of the costliest hazards across the world. According to Munich Re, losses worldwide since 1980 total more than $1 trillion, with insured losses at $129 billion.
Whilst flooding is a significant hazard, various natural disasters can interact and impact each other. Wildfires can leave large areas of ground charred, barren, and unable to absorb water, causing increased flood risk.
At InsTech we want to cover the array of climate-related events, insurance news and innovation that is occurring to help manage, insure and mitigate losses from these events. As of next year, Flood Focus will be expanding to become not just flood-focused, but current day climate-focused.
You may have missed some of our popular articles and podcasts from this year. We have added a section at the end of this newsletter with a round-up of our favourite flood-focused content for you to catch up on. We will be back with more flood and climate-focused insurance news and insights in January 2022.
At this live digital event, Matthew was joined by ICEYE and McKenzie Intelligence Services (MIS) to talk through how ICEYE deploys its synthetic aperture radar (SAR) satellites and how the data from these can be accessed via MIS. All steps from when a storm is first forecast to how the data gets onto an insurer's desktop were explained by ICEYE. If you missed it live, you can watch it on-demand here.
At our live evening event in London on 9th November, ICEYE discussed how near real-time hazard data can be used to speed up claims handling and reduce costs. You can listen to the highlights in podcast episode 167 with speakers including Fathom’s Andrew Smith and Alun Jones from Addresscloud.
In the news...
Analysis by flood modeller Fathom predicts that 1.35 million UK properties will be vulnerable to flood risk by 2050, which is an increase of 24% from 2020. We spoke to Fathom about future flood risk and the company’s climate-conditioned models at our 12th July online event.
This estimate places 2021 as the fourth-highest year for insured losses since 1970. The costliest disaster of the year was Hurricane Ida with $30-32 billion in estimated insured damages, including flooding in New York. The costliest event in Europe was flooding: the July floods in Germany, Belgium and nearby countries caused up to $13 billion in insured losses.
A weather system called an “atmospheric river” flowed across the southwest of British Columbia on 13th November, resulting in extreme heavy rainfall and flooding. According to preliminary estimates from Catastrophe Indices and Quantification (CatIQ, a subsidiary of Zurich-based PERILS AG), the floods are the costliest severe weather event in the province’s history.
According to Munich Re, only 1.1% of the population in emerging Asian markets has property insurance, a significant protection gap. In the Indus river basin in Pakistan, JBA’s flood data has been used to support a parametric trigger for a scheme set up by an international development organisation. This will provide rapid payments to support disaster relief, helping to close the insurance protection gap.