Effective management of flood risk is one of the most important challenges confronting (re)insurers today. Flooding can originate from multiple sources, persist for days or weeks, and is recognised as the most damaging peril driving catastrophic property and casualty losses.
For over 15 years, RMS has prioritised the advancement of flood hazard data and probabilistic modeling innovation. This effort has enabled advanced, high-resolution, comprehensive solutions for the consistent evaluation of flood risk – from underwriting, to capital management, and across the entire risk-decision chain.
Comprehensive View of Flood Risk
Flood risk is driven by all types of precipitation and sources of inundation, However, the relative dominance of those factors varies significantly on a regional and national basis. Simulated precipitation is the foundation of all RMS inland flood models, which ensure that potential fluvial and pluvial sources are evaluated, antecedent conditions are captured, and natural clustering and spatial correlation is explicitly represented.
Flood hazard can vary significantly across small distances and over time. The RMS High Definition (HD) modeling engine simulates losses from the ground-level. This allows you the flexibility to capture flood hazard at the optimal resolution, captureseasonalityimpacts, and accurately model time-dependent reinsurance policy terms such as the hours clause.
Complete Flood Defense Systems
Flood defenses are often the major determinant of flooding in an extreme event. Our advanced approach tomodeling flooddefenses in probabilistic and hazard data products account for both permanent and temporary defense systems -- even in the absence of information being publicly available.
Critical features for modelingflood impacton exposed risks are captured by hundreds of vulnerability curves available for every region we model. This includes primary parameters and secondary modifiers, such as the presence of basements and elevation of a location. RMS solutions leverage robust vulnerability relationships to precisely translate floodhazard tophysical damage and financial costs for residential, commercial and industrial structures.
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