Not just flood-focused... - Flood Focus Issue 8

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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.

Event: A Case Study in Collecting Actionable Data in the Era of Extreme Floods

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. 

Podcast: Near real time hazard data - around us and above us

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... 

UK: 1.35m properties to be at risk of flooding by 2050

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.

Global: Swiss Re estimates $112bn insured catastrophe losses in 2021

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. 

Canada: $351m insured damage from floods in British Columbia

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. 

Pakistan: JBA flood resilience case study

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.

In case you missed it...

Our podcasts and events:

Charles Blanchet: VP of Solutions, ICEYE: Your satellite will be with you shortly: Rapid flood loss assessment

Dr Andrew Smith & Dr Oliver Wing: COO & CRO, Fathom: Understanding flood - from research to risk assessment

Jane Toothill & Matt Reid: JBA Risk Management: US flood - lessons learnt from the UK

Driving Claims Excellence with Technology for Flooding Events

Future Flood Risk and the PRA Climate Change Stress Tests

Our articles:

The NFIP: Changes and Opportunities

To manage is to measure: observations on the recent European floods

Building flood resilience in the UK

In conversation with Verisk: Address-level risk assessment

COP26 and Insurance: The Key Themes

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