Improve your flood risk modelling

With the debate heating up on the ABI’s statement of principles and how it will affect risk portfolios come 1 July 2013, the development of your own flood model has never been so important.

Combine our location intelligence with flood risk data from third parties to analyse flood risk areas and identify over 25% more properties which you may have overlooked as being too high a risk to underwrite.

This video explains how our data is used to underwrite insurance policies.

Download the WMV file version of the video if you don't have access to YouTube.

Key issues in flood risk modelling

Increasing frequency of major loss flooding events - The ABI calculated that the insurance industry paid out approximately £3 billion in insurance claims during the ‘Great Autumn Floods’ of 2007 and a further £174 million following the 2009 Cumbrian flooding.
Greater need to be able to accurately model flood risks within your own property portfolio to maintain your competitive advantage.
Need to replace the reliance on postcode banding with individual property underwriting
Investment in flood defences reducing, whilst homeowners not seeing the importance of resilience and protecting their own properties from flooding.

The solution

Our location intelligence can enable you to:

Accurately locate properties within any given postcode area that are on raised ground and away from the threat of flood water; sell policies competitively that previously thought to be deemed to be too high a risk to cover.
Reveal the potential impacts of different types of risks and perils using scenario modelling to improve contingency planning for commercial customers.
Build a thorough understanding of accumulated risk within given locations or areas to identify hotspots and trends.
Immediately know your exposure to a peril during a disaster level event
Prewarn customers at risk of flooding before a loss takes place by matching our location intelligence with third party weather forecast data.

Business benefits

Better management of risk exposure when underwriting at individual address level rather than postcode banding.
Accurate pricing of policies - 26.7% increase in the amount of properties correctly identified in the flood risk zone compared to postcode banding.
Increase profitable revenue by underwriting more low risk properties
Improved event modelling and loss predictions.
Enhanced acquisition of profitable business through targeted cross and up selling marketing campaigns, reducing overheads.
Quicker and more accurate calculations of exposure to a peril/event to reassure shareholders