Model gives insurers quick estimate of flood exposure
Aon Benfield’s catastrophe modelling arm Impact Forecasting has launched a model for the recent Alberta floods in Canada.
The model is designed to let insurers gain a good estimate of their exposure very soon after the event.
The footprint of the flood event is based on an image from mapping service Sertit, distributed by Perils. The footprint is then converted to run on Aon’s Element platform, and then superimposed onto the insurer’s portfolio to calculate exposed sums insured.
Impact Forecasting president Steve Jakubowski said: “This scenario model illustrates the global scope of an open platform, such as Elements, where third party data can be used to quantify clients’ exposure in areas with no existing models available prior to the event.”
Impact Forecasting flood model developer Martin Kadlec said: “For the Alberta floods, Elements provides more accurate results based on the proportion of sums insured affected rather than the entire sums insured for each administrative unit or postal code. Additionally, the affected sums insured within each area do not blindly follow the location of the floods, but are weighted by population density data. Both of these parameters make this model more beneficial than simple GIS based analyses.”
The footprint is also available on Aon’s ImpactOnDemand platform.