Guy Carpenter Launches New G-CAT Canada Flood Model

First ever probabilistic flood model for Canada

New York, NY (Apr. 20, 2015) – Guy Carpenter & Company, LLC, a leading global risk and
reinsurance specialist and a wholly owned subsidiary of Marsh & McLennan Companies,
has launched its new G-CAT® Canada Flood Model. In creating the
first ever probabilistic flood model for Canada, Guy Carpenter has enabled insurers to
assess their exposure to flood, Canada’s most frequently occurring natural hazard.

Large areas of Canada experience flooding, with a number of such damaging events
occurring in recent years. The June 2013 Alberta floods, among the worst in Canadian
history, incurred insured losses estimated at CAD 1.8 billion, with the economic loss
estimated at CAD 6.2 billion.

“By launching the G-CAT Canada Flood Model, Guy Carpenter addresses the concern
of extreme losses from natural hazards in Canada, such as flooding,” said Donald
Callahan, President and CEO of Guy Carpenter Canada. “To produce this state-of-theart
flood model for the Canadian insurance market, Guy Carpenter collaborated with
experts in hydrological and hydraulic modeling to produce simulations for hurricane,
rainfall and river flow flooding catastrophes.”

“The G-CAT Canada Flood Model is the latest in an array of country-specific flood
models already developed by Guy Carpenter,” said Mark Weatherhead, Head of Model
Development at Guy Carpenter. “As part of Guy Carpenter’s multi-year global flood
initiative, the G-CAT Canada Flood Model provides clients with best-in-class flood
hazard management capabilities and includes the ability to carry out exposure
management, scenario testing and probabilistic flood assessment.”

The model enables clients to evaluate both exposure to flood and the financial cost of a
range of possible flood events. Historic flood events such as the Alberta floods from two
years ago are incorporated as well. Flood maps are created using two hydraulic
modeling techniques that take into account Canada’s large geographic area and the
diversity of its landscapes as well as the population density of the area being modeled.
Also included is a comprehensive view of river flood defenses throughout the country.

Event losses are based on probability distributions representing the vulnerability of
insured exposures derived from a number of sources. Those sources include detailed
claims data from a variety of Canadian insurers based on recent flood events,
specialized knowledge of the Canadian insurance market, and insight gained during the
development of flood models in other territories. The flood model not only produces
losses within the flooded area of a simulated event, but also near the margins of an
event’s footprint. It uses Guy Carpenter’s proprietary software to keep track of a number
of metrics for each simulated loss from the event set and gives the uncertainty
associated with the mean losses.

Guy Carpenter has long been a pioneer in flood modeling in Europe, Latin America and
Asia. The G-CAT Canada Flood Model is another example of Guy Carpenter’s
innovative approach to creating a solution that allows clients to successfully assess and
manage flood risk – one of the most destructive but least modeled perils in the world

About Guy Carpenter

Guy Carpenter & Company, LLC is a global leader in providing risk and reinsurance intermediary
services. With over 50 offices worldwide, Guy Carpenter creates and executes reinsurance solutions and
delivers capital market solutions* for clients across the globe. The firm’s full breadth of services includes
line-of-business expertise in agriculture; aviation; casualty clash; construction and engineering; cyber
solutions; excess and umbrella; excess and surplus lines; healthcare & life; marine and energy; mutual
insurance companies; political risk and trade credit; professional liability; property; retrocessional
reinsurance; surety; terrorism and workers compensation. GC Fac® is Guy Carpenter’s dedicated global
facultative reinsurance unit that provides placement strategies, timely market access and centralized
management of facultative reinsurance solutions. In addition, GC Analytics®** utilizes industry-leading
quantitative skills and modelling tools that optimize the reinsurance decision-making process and help
make the firm’s clients more successful. For more information, visit

Guy Carpenter is a wholly owned subsidiary of Marsh & McLennan Companies (NYSE: MMC), a global
professional services firm offering clients advice and solutions in the areas of risk, strategy and people.
With annual revenue exceeding $13 billion, Marsh & McLennan Companies’ 57,000 colleagues worldwide provide
analysis, advice, and transactional capabilities to clients in more than 130 countries. through: Marsh, a leader in
insurance broking and risk management; Mercer, a leader in talent, health, retirement, and investment
consulting; and Oliver Wyman, a leader in management consulting. Marsh & McLennan is committed to
being a responsible corporate citizen and making a positive impact in the communities in which it
Visit for more information.

*Securities or investments, as applicable, are offered in the United States through GC Securities, a division of MMC
Securities Corp., a US registered broker-dealer and member FINRA/NFA/SIPC. Main Office: 1166 Avenue of the
Americas, New York, NY 10036. Phone: (212) 345-5000. Securities or investments, as applicable, are offered in the
European Union by GC Securities, a division of MMC Securities (Europe) Ltd. (MMCSEL), which is authorized and
regulated by the Financial Conduct Authority, main office 25 The North Colonnade, Canary Wharf, London E14 5HS.
Reinsurance products are placed through qualified affiliates of Guy Carpenter & Company, LLC. MMC Securities
Corp., MMC Securities (Europe) Ltd. and Guy Carpenter & Company, LLC are affiliates owned by Marsh &
McLennan Companies. This communication is not intended as an offer to sell or a solicitation of any offer to buy any
security, financial instrument, reinsurance or insurance product.

**GC Analytics is a registered mark with the U.S. Patent and Trademark Office.

SOURCE: Guy Carpenter