A model based on over 400 000 extreme weather scenarios

Flooding (photo)

In the US, insurance provided through the National Flood Insurance Program (NFIP) covers only around 15 percent of homeowners, leaving a huge protection gap with a financially vulnerable population when extreme weather strikes. Historically, insurers have struggled to set adequate premiums for flood coverage, as slight variations in elevation could result in dramatic differences in losses sustained by adjacent properties.

“Customers are becoming more aware of their true vulnerability to flood damage. Now that the price more accurately reflects the risk, they’re making the good decision to opt for this coverage.”

Locke Burt

Chairman, Security First

Swiss Re’s proprietary flood modelling tool calculates risk to an individual location, so insurers can confidently offer customers flood insurance. This powerful model uses elevation and precipitation data to generate more than 400 000 extreme weather scenarios — some based on disasters like Hurricane Sandy — to predict likely outcomes.