RMS continues to refine its estimate of the insured losses from Harvey. In the meantime, I think it’s worth looking in more detail at the potential exposure of the National Flood Insurance Program (NFIP) to this major hurricane.
Last Monday, Daniel wrote that it was likely that “Harvey will produce at least US$4 billion in flood claims, triggering the NFIP reinsurance program.” With NFIP up next month for reauthorization and reform, this is an important point — and not just for the 25 reinsurers underwriting over US$1 billion of NFIP’s claims.
Farhana Alarakhiya, vice president – Products, RMS
Hurricane Harvey continues to be top of mind at the RMS offices. On Wednesday, RMS hosted a client webinar where Mark Powell, Tom Sabbatelli and Pete Dailey discussed how we have applied our methodology developed for the RMS U.S. High Definition (HD) Flood Model to provide insights to the extent and severity of the flooding from Harvey, with Houston as our top priority. This effort has resulted in a high-fidelity hazard inundation map which is now available to all RMS clients.
For clients on the RMS(one)® platform who use Exposure Manager, this effort goes one step further. We automatically seed the Harvey hazard layer in the client tenant, to deliver instantaneous access to analytic insights from the U.S. Inland Flood HD Model. This models all sources of flooding across space and time, and can also be used to identify and differentiate locations at risk based on flood extent and severity.
Michael Young, senior director – Product Management, RMS
Hurricane Harvey is now driving catastrophic flooding across the entire Houston Metropolitan region. The behavior of the storm is almost without precedent, and Harvey has already broken all U.S. records for tropical cyclone-driven extreme rainfall with observed cumulative amounts of 51 inches (129 centimeters) – far exceeding Allison in 2001, along with Claudette in 1979, and Amelia in 1978, not only in volume but also regional extent.
While we will continue to refine our modeling parameters for the Category 4 wind and storm surge that Harvey generated on Saturday, our clear focus is now on the inundation of Houston, the fourth largest city in the U.S. The storm has achieved a paradigm shift, and we have mobilized all our capabilities to apply the tools, data and processes developed for the RMS U.S. High Definition (HD) Flood Model to provide insights to the extent and severity of the flooding, with Houston as our top priority.