JBA launches flood model for more effective risk pricing

JBA Risk Management has launched a UK flood model to better inform flood risk management. The model has predicted that one in four UK properties are at risk of flooding.

The flood model now uses the company’s FLY Technology, which JBA said enables the insurance market to build models quickly at run time rather than from traditional pre-compiled parameters.

This brings unprecedented customisation and flexibility, JBA added, which enables reinsurers and insurers to assess flood risk to individual properties for effective risk pricing, portfolio management, and to avoid over or underinsurance.

The flood specialist’s UK Flood Model also highlighted an estimated annual cost of £527m to UK residential properties from flood, a figure that rises to £1.9bn without flood defences.

The new UK Flood Model shows that flood defences could reduce losses by an estimated 360% across river, surface water and coastal flooding, with coastal flooding up to 1300% higher without coastal flood defences. Losses from river flood are reduced by an estimated 295% from river flood defences. The data also shows that property level protection has the potential to make a huge difference – raising individual property defences for all residential properties in the UK could potentially reduce losses by half.

Nikki Pilgrim, technical director at JBA Risk Management, said, “Our new UK Flood Model’s enhanced functionality enables the insurance market to fully understand their flood exposure – users can easily, and quickly, undertake ‘what if’ investigations based on their own needs, see the impacts on their losses, and fully understand individual and portfolio risk profiles.”

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