Property insurance underwriters urgently need to ask themselves if they understand the shortcomings of standard floodplain mapping well enough to continue covering flood risk.
Read the full blog post here: http://www.genre.com/knowledge/blog/what-you-dont-know-about-flood-can-hurt-you.html
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
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?