{"id":445,"date":"2024-05-21T15:22:36","date_gmt":"2024-05-21T15:22:36","guid":{"rendered":"http:\/\/cherishedmemoriesstudios.com\/?p=445"},"modified":"2024-05-28T14:28:56","modified_gmt":"2024-05-28T14:28:56","slug":"accurately-writingflood-coverage-hinges-on-diverse-data-sources","status":"publish","type":"post","link":"http:\/\/cherishedmemoriesstudios.com\/index.php\/2024\/05\/21\/accurately-writingflood-coverage-hinges-on-diverse-data-sources\/","title":{"rendered":"Accurately WritingFlood Coverage Hinges on Diverse Data Sources"},"content":{"rendered":"<figure class=\"wp-block-image size-large\"><a href=\"https:\/\/insuranceindustryblog.iii.org\/wp-content\/uploads\/2024\/05\/GettyImages-601945516.jpg\"><img loading=\"lazy\" width=\"1024\" height=\"683\" src=\"data:image\/gif;base64,R0lGODlhAQABAAAAACH5BAEKAAEALAAAAAABAAEAAAICTAEAOw==\" alt=\"\" class=\"wp-image-18785 lazyload\" data-src=\"http:\/\/cherishedmemoriesstudios.com\/wp-content\/uploads\/2024\/05\/GettyImages-601945516-1024x683-1.jpg\"><\/a><\/figure>\n<\/p>\n<p>Flood risk is not only one of the most destructive perils facing property owners; it is among the most complicated forms of coverage for property\/casualty insurers to underwrite. For decades, the private market wouldn\u2019t cover flood risk, which is why the National Flood Insurance Program had to be established.<\/p>\n<p>But improved data collection and the availability of practically unlimited computing power have changed the equation for insurers, according to Anil Vasagiri, senior vice president for property solutions at Swiss Re. In a recent Executive Exchange with Triple-I CEO Sean Kevelighan, Vasagiri discussed the developments that have helped turn flood from a nearly untouchable peril to a burgeoning area of opportunity for insurers.<\/p>\n<figure class=\"wp-block-embed is-type-video is-provider-youtube wp-block-embed-youtube wp-embed-aspect-16-9 wp-has-aspect-ratio\">\n<div class=\"wp-block-embed__wrapper\">\n<p><iframe loading=\"lazy\" title=\"Executive Exchange Swiss Re\" width=\"960\" height=\"540\" src=\"https:\/\/www.youtube.com\/embed\/hCWlrFXF_oo?feature=oembed\" frameborder=\"0\" allow=\"accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share\" referrerpolicy=\"strict-origin-when-cross-origin\" allowfullscreen><\/iframe><\/p>\n<\/div>\n<\/figure>\n<p>Over 90 percent of natural catastrophes involve flood in some way or another. &nbsp;Vasagiri said the ability to use multiple data sources in understanding flood conditions of specific properties helps insurers more accurately underwrite flood and help policyholders proactively address their own exposure to the peril.&nbsp;<\/p>\n<p>\u201cIncreased information leads to increased capacity,\u201d Vasagiri said \u2013 a fact that bodes well for improving insurance availability and affordability and evidenced by the increased number of private insurers writing flood coverage since 2016.<\/p>\n<p>The timing of the private market\u2019s increasing appetite for flood risk is fortuitous, as it coincides with <a href=\"https:\/\/www.fema.gov\/flood-insurance\/risk-rating\">Risk Rating 2.0<\/a>, NFIP\u2019s new pricing methodology that aims to make the government agency\u2019s flood insurance premium rates more actuarially sound and equitable by better aligning them with individual properties\u2019 flood risk. As NFIP rates become more aligned with principles of <a href=\"https:\/\/www.iii.org\/sites\/default\/files\/docs\/pdf\/triple-i_trends_and_insights_risk_based_pricing_brief_09062022.pdf\">risk-based pricing<\/a>, some policyholders\u2019 prices are expected to fall, while many are going to rise.<\/p>\n<p>In the Executive Exchange, Vasagiri discussed the Swiss Re\u2019s acquisition of Fathom \u2013 a U.K.-based company specializing in water-related risks \u2013 as part of the company\u2019s ongoing commitment to helping close the flood protection gap.<\/p>\n<p><strong><em>Learn More:<\/em><\/strong><\/p>\n<p><a href=\"https:\/\/www.iii.org\/sites\/default\/files\/docs\/pdf\/triple-i_state_of_the_risk_floods_08162023.pdf\">Triple-I \u201cState of the Risk\u201d Issues Brief: Flood<\/a><\/p>\n<p><a href=\"https:\/\/www.iii.org\/sites\/default\/files\/docs\/pdf\/triple-i_trends_and_insights_risk_based_pricing_brief_09062022.pdf\">Triple-I \u201cTrends and Insights\u201d Issues Brief: Risk-Based Pricing of Insurance<\/a><\/p>\n<p><a href=\"https:\/\/insuranceindustryblog.iii.org\/lee-county-fla-towns-could-lose-nfip-flood-insurance-discounts\/\">Lee County, Fla., Towns Could Lose NFIP Discounts<\/a><\/p>\n<p><a href=\"https:\/\/insuranceindustryblog.iii.org\/miami-dade-fla-sees-flood-insurance-rate-cuts-thanks-to-resilience-investment\/\">Miami-Dade, Fla., Sees Flood Insurance Rate Cuts, Thanks to Resilience Investment<\/a><\/p>\n<p><a href=\"https:\/\/insuranceindustryblog.iii.org\/milwaukee-district-eyes-expanding-nature-based-flood-mitigation-plan\/\">Milwaukee District Eyes Expanding Nature-Based Flood Mitigation Plan<\/a><\/p>\n<p><a href=\"https:\/\/insuranceindustryblog.iii.org\/attacking-the-risk-crisis-roadmap-to-investmentin-flood-resilience-2\/\">Attacking the Risk Crisis: Roadmap to Investment in Flood Resilience<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Flood risk is not only one of the most destructive perils facing property owners; it is among the most complicated forms of coverage for property\/casualty insurers to underwrite. For decades, the private market wouldn\u2019t cover flood risk, which is why the National Flood Insurance Program had to be established. But improved data collection and the availability of practically unlimited computing power have changed the equation for insurers, according to Anil Vasagiri, senior vice president for property solutions at Swiss Re. In a recent Executive Exchange with Triple-I CEO Sean Kevelighan, Vasagiri discussed the developments that have helped turn flood from a nearly untouchable peril to a burgeoning area of opportunity for insurers. Over 90 percent of natural catastrophes involve flood in some way or another. &nbsp;Vasagiri said the ability to use multiple data sources in understanding flood conditions of specific properties helps insurers more accurately underwrite flood and help policyholders proactively address their own exposure to the peril.&nbsp; \u201cIncreased information leads to increased capacity,\u201d Vasagiri said \u2013 a fact that bodes well for improving insurance availability and affordability and evidenced by the increased number of private insurers writing flood coverage since 2016. The timing of the private market\u2019s increasing appetite for flood risk is fortuitous, as it coincides with Risk Rating 2.0, NFIP\u2019s new pricing methodology that aims to make the government agency\u2019s flood insurance premium rates more actuarially sound and equitable by better aligning them with individual properties\u2019 flood risk. As NFIP rates become more aligned with principles of risk-based pricing, some policyholders\u2019 prices are expected to fall, while many are going to rise. In the Executive Exchange, Vasagiri discussed the Swiss Re\u2019s acquisition of Fathom \u2013 a U.K.-based company specializing in water-related risks \u2013 as part of the company\u2019s ongoing commitment to helping close the flood protection gap. Learn More: Triple-I \u201cState of the Risk\u201d Issues Brief: Flood Triple-I \u201cTrends and Insights\u201d Issues Brief: Risk-Based Pricing of Insurance Lee County, Fla., Towns Could Lose NFIP Discounts Miami-Dade, Fla., Sees Flood Insurance Rate Cuts, Thanks to Resilience Investment Milwaukee District Eyes Expanding Nature-Based Flood Mitigation Plan Attacking the Risk Crisis: Roadmap to Investment in Flood Resilience<\/p>\n","protected":false},"author":1,"featured_media":447,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[15],"tags":[],"_links":{"self":[{"href":"http:\/\/cherishedmemoriesstudios.com\/index.php\/wp-json\/wp\/v2\/posts\/445"}],"collection":[{"href":"http:\/\/cherishedmemoriesstudios.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/cherishedmemoriesstudios.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/cherishedmemoriesstudios.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"http:\/\/cherishedmemoriesstudios.com\/index.php\/wp-json\/wp\/v2\/comments?post=445"}],"version-history":[{"count":2,"href":"http:\/\/cherishedmemoriesstudios.com\/index.php\/wp-json\/wp\/v2\/posts\/445\/revisions"}],"predecessor-version":[{"id":448,"href":"http:\/\/cherishedmemoriesstudios.com\/index.php\/wp-json\/wp\/v2\/posts\/445\/revisions\/448"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/cherishedmemoriesstudios.com\/index.php\/wp-json\/wp\/v2\/media\/447"}],"wp:attachment":[{"href":"http:\/\/cherishedmemoriesstudios.com\/index.php\/wp-json\/wp\/v2\/media?parent=445"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/cherishedmemoriesstudios.com\/index.php\/wp-json\/wp\/v2\/categories?post=445"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/cherishedmemoriesstudios.com\/index.php\/wp-json\/wp\/v2\/tags?post=445"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}