London, UK (Oct. 30, 2016) – Aon has published the eighth article in the 2018 Global Insurance Market Opportunities (GIMO) series, “A Scientist’s Guide to Insuring Flood: 5 things you need to know.”
The risk of flood is prevalent all over the world, having caused almost USD550 billon of global economic damage over the past decade and leaving a huge impact on society. Although we can never fully protect ourselves from flood, the insurance industry plays a critical role in working with governments, businesses, and families to build resilient communities while underwriting profitability.
Despite many classifications of flood, one fact remains common: it is a complex peril that takes four key forms – riverine, rainfall flooding, storm surge, and tsunami – which can occur simultaneously in extreme situations. Plus, floods are often triggered by other perils, such as earthquakes and hurricanes.
How can a scientist’s perspective on flood help the insurance industry better prepare for this risk?
Dr. Petr Puncochar from Aon’s Impact Forecasting team tackles the topic by clarifying some common flood misconceptions between scientists and insurance professionals, explaining the pitfalls and benefits of modeling tools and, most critically, outlining the key opportunities to better understand this risk and build a more resilient future.
Here are Petr’s top five tips:
- A flood is never just a flood: understand the basic hazard concepts.
- Don’t be fooled by magnificent maps: pick the right tool to boost your flood risk understanding.
- Flood insurance buying is in your hands: use knowledge to boost your customers’ protection.
- Join the model evolution from reinsurance to regulation: don’t miss out on these strategic tools.
- Climate change and the protection gap are buzz words for a reason: turn flood threats into opportunities for resilience and growth.
In “A Scientist’s Guide to Insuring Flood: 5 things you need to know,” Petr goes into greater detail about his five tips and adds some extra takeaways.
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SOURCE: Aon Reinsurance SolutionsTags: Aon, climate change, flood, protection gap