A model based on over 400 000 extreme weather scenarios

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.

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.