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What You Don’t Know About Flood Can Hurt You
Floods rank in the top 10 global insured losses by value
with a total insured loss of USD 15.3 billion
Floods rank in the top 10 global insured losses by value
with a total insured loss of USD 15.3 billion
2012
Sandy
$25B
Floods rank in the top 10 global insured losses by value
with a total insured loss of USD 15.3 billion
2005
Katrina
$47B
2012
Sandy
$25B
Floods rank in the top 10 global insured losses by value
with a total insured loss of USD 15.3 billion
2005
Katrina
$47B
2012
Sandy
$25B $4B
2012
Europe
Flooding
Floods rank in the top 10 global insured losses by value
with a total insured loss of USD 15.3 billion
2005
Katrina
$47B
2012
Sandy
$25B $4B
2011
Thailand
Flooding
2012
Europe
Flooding
$15B
Source: Central Europe Flooding by Jargo / CC BY-SA 3.0.
Floods rank in the top 10 global insured losses by value
with a total insured loss of USD 15.3 billion
more than 20 times Thailand'sannual propertypremiums.
2005
Katrina
$47B
2012
Sandy
$25B $4B
2011
Thailand
Flooding
2012
Europe
Flooding
$15B
Source: Central Europe Flooding by Jargo / CC BY-SA 3.0.
In Canada, there are twiceas
many flood events as other
meteorological disaster events.
In Canada, there are twiceas
many flood events as other
meteorological disaster events.
43%
Flood
In Canada, there are twiceas
many flood events as other
meteorological disaster events.
43%
Flood
16%
Hail/Thunderstorm
In Canada, there are twiceas
many flood events as other
meteorological disaster events.
43%
Flood
16%
Hail/Thunderstorm
12%
Wildfire
In Canada, there are twiceas
many flood events as other
meteorological disaster events.
43%
Flood
16%
Hail/Thunderstorm
12%
Wildfire
9%
Winter Storm
In Canada, there are twiceas
many flood events as other
meteorological disaster events.
43%
Flood
16%
Hail/Thunderstorm
12%
Wildfire
9%
Winter Storm
20%
Other
2013 Calgary Floods:
Total damage
estimates exceeded
C$45 billion.
Vancouver earthquake:
C$17-22 billion for
a 500-year event
Quebec flood:
C$4.8-5.8 billion for
a 500-year event
BC flood:
C$7-10 billion for
a 500-year event
Alberta flood:
C$0.6-1 billion for
a 500-year event
Ontario flood:
C$5 billion for
a 250- to 500-year event
Data source: Public Safety Canada, 2007
2013 Calgary Floods:
Total damage
estimates exceeded
C$45 billion.
Vancouver earthquake:
C$17-22 billion for
a 500-year event
Quebec flood:
C$4.8-5.8 billion for
a 500-year event
BC flood:
C$7-10 billion for
a 500-year event
Alberta flood:
C$0.6-1 billion for
a 500-year event
Ontario flood:
C$5 billion for
a 250- to 500-year event
Data source: Public Safety Canada, 2007
In terms of insurable
damages, costliest disaster
in Canadian historyat
C$2.25 billion.
But how accurate is the data being used to underwritethisexposure?
Beware of false
knowledge; it is
more dangerous
than ignorance.
Do insurers understand floodplain
mapping well enough to underwrite
the risk due to flooding
Northern Canada
Central Canada Eastern CanadaWestern Canada
2013 Survey of Canada’s Largest Property/Casualty Companies
No Don’t
Know
Yes No
Response
The FederalPublic Safety Department acknowledged the issue and ordered
a new study to surveyflood mapping in six countries, includingthe U.S.
Floodplain map boundaries
are only as accurate as the topographic map
on which they are drawn. Due to the small
scale of Survey maps, the flood boundaries
cannot be precisely mapped…
Maps do not always represent exact
conditions on the ground.
How do we improve
understanding of the Flood Risk
Increased
understanding of:
Return Periods
Increased
understanding of:
Flood Maps and
Mapping Errors
Return Periods
Increased
understanding of:
Flood Maps and
Mapping Errors
Geocoding and
Geocoding Errors
Return Periods
Increased
understanding of:
Transforming
information into
knowledge is
a competitive
advantage.
Remember
Return Periods
For Flood Zone boundaries, indicate the chance of
flood waters exceeding that level.
For the 100-year flood plain, the highest point of the
water has a 1% chance of being exceeded in any year.
Flood Maps
Represent the primary flood risk assessment tool used
by municipalities, insurance companies, banks, etc.
They do not evaluate individual properties and
are very broad-based.
The 100-year flood plain is 33 meters,
so everything below the line is Zone A.
All houses look the same on a flood map.
Is the exposure the same?
100-Year Flood Elevation
31 m.
34 m.
32 m.
33 m.
30 m.
36 m.
39 m.
33 m.
Not all locations in the 100-year
zone are the same.
Don’t rate them that way.
64 meters elevation
67 meters elevation
67.5 meters elevation
100 meters elevation
Geocoding
Assigns geographic coordinates to street addresses.
Hazard mapping using geocoding technology
highlights areas that are vulnerable to a particular
hazard, allowing the industry to better determine if a
specific location is subject to natural hazards.
Rooftop Resolution
Inputting an address provides the
latitude/longitude coordinates of the center
of the parcel.
Inputting an address provides the
latitude/longitude coordinates of the street
in front of where the building is inferred
to be.
Street Level
Rooftop vs. Street Resolution
1208
1208 SILVER LEAF CIR
1264 OAK CREST DR
1264
1223
1213
1217
1263 OAK CREST DR
1263
1228 SILVER LEAF CIR
1228
1255
1256
1260
1259
1260 OAK CREST DR
1256 OAK CREST DR
1232 SILVER LEAF CIR
1259 OAK CREST DR
1255 OAK CREST DR
1217 SILVER LEAF CIR
1223 SILVER LEAF CIR
Courtesy of NAVTEQ and CoreLogic
Calgary 2013
Aerial photo of a flooded
Calgary Stampede stadium
and Saddledome.
Source: The Canadian Press/Jonathan Hayward
Using the Latest Mapping Technology
Imagery Ⓒ2014 Google, Map data Ⓒ2014 Google
There is a 268-meter difference
between the mapped point and
where water actually started
entering the facility.
If you were underwritingthis
risk, would “closeenough”
be good enough?
Underwriting using only
standard flood maps
misses half
the properties at risk.
About 30%
of multi-claim properties
located in flood zones are
considered to be moderate
or minimal risk.
Don’tbefooled.
Be vigilant about examining
flood exposure,
risk by risk.
Use all tools and technology
available and understand
their limitations.
Analyze elevation
and topographical
features
that surround a risk.
To avoid adverse selection, uncover as
much informationas possible. And know
whento investigate further.
Remember the old saying,
Close in flood underwriting
puts you at great risk.
“Closeonlycountsinhorseshoes
andhandgrenades.”
For more informationon
underwritingflood exposure, contact
Tim Pappas.
© 2014 General Re Corporation | This presentation is intended to provide background information to our clients and professional staff.
It is time sensitive and may need to be revised and updated periodically.
/in/timpappasin
+1 212 341 8021p
tpappas@genre.come
t @timothy_pappas

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What You Don’t Know About Flood Can Hurt You

  • 2. Floods rank in the top 10 global insured losses by value with a total insured loss of USD 15.3 billion
  • 3. Floods rank in the top 10 global insured losses by value with a total insured loss of USD 15.3 billion 2012 Sandy $25B
  • 4. Floods rank in the top 10 global insured losses by value with a total insured loss of USD 15.3 billion 2005 Katrina $47B 2012 Sandy $25B
  • 5. Floods rank in the top 10 global insured losses by value with a total insured loss of USD 15.3 billion 2005 Katrina $47B 2012 Sandy $25B $4B 2012 Europe Flooding
  • 6. Floods rank in the top 10 global insured losses by value with a total insured loss of USD 15.3 billion 2005 Katrina $47B 2012 Sandy $25B $4B 2011 Thailand Flooding 2012 Europe Flooding $15B Source: Central Europe Flooding by Jargo / CC BY-SA 3.0.
  • 7. Floods rank in the top 10 global insured losses by value with a total insured loss of USD 15.3 billion more than 20 times Thailand'sannual propertypremiums. 2005 Katrina $47B 2012 Sandy $25B $4B 2011 Thailand Flooding 2012 Europe Flooding $15B Source: Central Europe Flooding by Jargo / CC BY-SA 3.0.
  • 8. In Canada, there are twiceas many flood events as other meteorological disaster events.
  • 9. In Canada, there are twiceas many flood events as other meteorological disaster events. 43% Flood
  • 10. In Canada, there are twiceas many flood events as other meteorological disaster events. 43% Flood 16% Hail/Thunderstorm
  • 11. In Canada, there are twiceas many flood events as other meteorological disaster events. 43% Flood 16% Hail/Thunderstorm 12% Wildfire
  • 12. In Canada, there are twiceas many flood events as other meteorological disaster events. 43% Flood 16% Hail/Thunderstorm 12% Wildfire 9% Winter Storm
  • 13. In Canada, there are twiceas many flood events as other meteorological disaster events. 43% Flood 16% Hail/Thunderstorm 12% Wildfire 9% Winter Storm 20% Other
  • 14. 2013 Calgary Floods: Total damage estimates exceeded C$45 billion. Vancouver earthquake: C$17-22 billion for a 500-year event Quebec flood: C$4.8-5.8 billion for a 500-year event BC flood: C$7-10 billion for a 500-year event Alberta flood: C$0.6-1 billion for a 500-year event Ontario flood: C$5 billion for a 250- to 500-year event Data source: Public Safety Canada, 2007
  • 15. 2013 Calgary Floods: Total damage estimates exceeded C$45 billion. Vancouver earthquake: C$17-22 billion for a 500-year event Quebec flood: C$4.8-5.8 billion for a 500-year event BC flood: C$7-10 billion for a 500-year event Alberta flood: C$0.6-1 billion for a 500-year event Ontario flood: C$5 billion for a 250- to 500-year event Data source: Public Safety Canada, 2007 In terms of insurable damages, costliest disaster in Canadian historyat C$2.25 billion.
  • 16. But how accurate is the data being used to underwritethisexposure? Beware of false knowledge; it is more dangerous than ignorance.
  • 17. Do insurers understand floodplain mapping well enough to underwrite the risk due to flooding
  • 18. Northern Canada Central Canada Eastern CanadaWestern Canada 2013 Survey of Canada’s Largest Property/Casualty Companies No Don’t Know Yes No Response
  • 19. The FederalPublic Safety Department acknowledged the issue and ordered a new study to surveyflood mapping in six countries, includingthe U.S. Floodplain map boundaries are only as accurate as the topographic map on which they are drawn. Due to the small scale of Survey maps, the flood boundaries cannot be precisely mapped… Maps do not always represent exact conditions on the ground.
  • 20. How do we improve understanding of the Flood Risk
  • 23. Flood Maps and Mapping Errors Return Periods Increased understanding of:
  • 24. Flood Maps and Mapping Errors Geocoding and Geocoding Errors Return Periods Increased understanding of:
  • 25. Transforming information into knowledge is a competitive advantage. Remember
  • 26. Return Periods For Flood Zone boundaries, indicate the chance of flood waters exceeding that level. For the 100-year flood plain, the highest point of the water has a 1% chance of being exceeded in any year.
  • 27. Flood Maps Represent the primary flood risk assessment tool used by municipalities, insurance companies, banks, etc. They do not evaluate individual properties and are very broad-based.
  • 28. The 100-year flood plain is 33 meters, so everything below the line is Zone A. All houses look the same on a flood map. Is the exposure the same? 100-Year Flood Elevation 31 m. 34 m. 32 m. 33 m. 30 m. 36 m. 39 m. 33 m.
  • 29. Not all locations in the 100-year zone are the same. Don’t rate them that way. 64 meters elevation 67 meters elevation 67.5 meters elevation 100 meters elevation
  • 30. Geocoding Assigns geographic coordinates to street addresses. Hazard mapping using geocoding technology highlights areas that are vulnerable to a particular hazard, allowing the industry to better determine if a specific location is subject to natural hazards.
  • 31. Rooftop Resolution Inputting an address provides the latitude/longitude coordinates of the center of the parcel. Inputting an address provides the latitude/longitude coordinates of the street in front of where the building is inferred to be. Street Level
  • 32. Rooftop vs. Street Resolution 1208 1208 SILVER LEAF CIR 1264 OAK CREST DR 1264 1223 1213 1217 1263 OAK CREST DR 1263 1228 SILVER LEAF CIR 1228 1255 1256 1260 1259 1260 OAK CREST DR 1256 OAK CREST DR 1232 SILVER LEAF CIR 1259 OAK CREST DR 1255 OAK CREST DR 1217 SILVER LEAF CIR 1223 SILVER LEAF CIR Courtesy of NAVTEQ and CoreLogic
  • 33. Calgary 2013 Aerial photo of a flooded Calgary Stampede stadium and Saddledome. Source: The Canadian Press/Jonathan Hayward
  • 34. Using the Latest Mapping Technology Imagery Ⓒ2014 Google, Map data Ⓒ2014 Google There is a 268-meter difference between the mapped point and where water actually started entering the facility. If you were underwritingthis risk, would “closeenough” be good enough?
  • 35. Underwriting using only standard flood maps misses half the properties at risk.
  • 36. About 30% of multi-claim properties located in flood zones are considered to be moderate or minimal risk. Don’tbefooled.
  • 37. Be vigilant about examining flood exposure, risk by risk. Use all tools and technology available and understand their limitations.
  • 38. Analyze elevation and topographical features that surround a risk. To avoid adverse selection, uncover as much informationas possible. And know whento investigate further.
  • 39. Remember the old saying, Close in flood underwriting puts you at great risk. “Closeonlycountsinhorseshoes andhandgrenades.”
  • 40. For more informationon underwritingflood exposure, contact Tim Pappas. © 2014 General Re Corporation | This presentation is intended to provide background information to our clients and professional staff. It is time sensitive and may need to be revised and updated periodically. /in/timpappasin +1 212 341 8021p tpappas@genre.come t @timothy_pappas