IBC s New Flood Maps - Leveraging data to effectively assess and manage flood risk



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IBC s New Flood Maps - Leveraging data to effectively assess and manage flood risk Speakers: Lapo Calamai - Director, Catastrophe Risk and Economic Analysis, IBC Simon de la Hoyde - Head of Sales, Insurance, UK, Ireland and Canada, LexisNexis Risk Solutions Richard Toomey - Manager, GIS Analytics, Insurance, LexisNexis Risk Solutions Dermot McNally - Product Champion, Insurance, LexisNexis Risk Solutions Helen Smith - JBA Risk Management

Agenda Overview of the work LexisNexis and IBC have been doing Simon de la Hoyde - Head of Sales, Insurance, UK, Ireland and Canada, LexisNexis Risk Solutions Key findings from the research Richard Toomey - Manager, GIS Analytics, Insurance, LexisNexis Risk Solutions Best practices for using the data in pricing and underwriting Dermot McNally - Product Champion, Insurance, LexisNexis Risk Solutions JBA flood models and mapping methodology Helen Smith JBA Risk Management

Agenda Overview of the work LexisNexis and IBC have been doing Simon de la Hoyde - Head of Sales, Insurance, UK, Ireland and Canada, LexisNexis Risk Solutions Key findings from the research Richard Toomey - Manager, GIS Analytics, Insurance, LexisNexis Risk Solutions Best practices for using the data in pricing and underwriting Dermot McNally - Product Champion, Insurance, LexisNexis Risk Solutions JBA flood models and mapping methodology Helen Smith JBA Risk Management

Overview In 2015, IBC selected LexisNexis as lead vendor to manage its national flood program initiative Leverage LexisNexis Map View risk assessment and exposure management platform Extensive experience working with insurers in the UK, Ireland, Europe, US and Canada A key component of this initiative is the creation of all new pluvial and fluvial flood maps for Canada produced by JBA Risk Management

Key Goals of the Program Quantify the extent of flood risk and exposure across Canada Identify the number of properties at risk of flooding and the associated economic loses for any geography in Canada Identify exposure hotspots allow IBC to perform sensitivity testing of flood exposure and potential losses based on various scenario analyses

The driving forces in the Canadian market Cat Losses Investment Returns 6

Canadian Insured Cat Losses Across Canada, insured damages from extreme weather events have cost almost $8 billion since 2010. This is only a portion of the total economic costs to the country. 2013 was a record year for cat loss with total insured losses at 3.2B 7

Water now the #1 peril, accounting for 50% of all claims $22 Billion in flood damage across Canada in the past 10 yrs 1.8 Top 5 Cat Events 1.6 1.4 1.2 1 0.8 0.6 0.4 0.2 0 Calgary Flood 2013 Ice Storm 1998 Toronto Flood 2013 Slave Lake Fire 2011 Toronto Flood 2005 8

Agenda Overview of the work LexisNexis and IBC have been doing Simon de la Hoyde - Head of Sales, Insurance, UK, Ireland and Canada, LexisNexis Risk Solutions Key findings from the research Richard Toomey - Manager, GIS Analytics, Insurance, LexisNexis Risk Solutions Best practices for using the data in pricing and underwriting Dermot McNally - Product Champion, Insurance, LexisNexis Risk Solutions JBA flood models and mapping methodology Helen Smith JBA Risk Management

Data Gathering Specific Data Types Terrain data (higher resolution the better) Hydrometric Data Snow cover Rainfall data Flood Defences outlines Historical Flood data Landcover

Output Flood Models: River (Fluvial) Model Surface Water (Pluvial) Model Combined Model Return Periods: 1:20 year 1:50 year 1: 75 year 1:100 year 1: 200 year 1:500 year 1: 1500 year ADR: Annual Damage Ratio Property level version VRG version ADR Defended and Undefended view Confidence Layer: Layer denoting the level of accuracy in the data in a particular area. Defended Layer: Layer denoting where there is a defence

Property Counts 8.6m residential addresses in Canada 1.8m susceptible to some level of flood according to JBA flood models. 2.1m covered by some type of flood defense. Residential Property Count, by Return Period (Fluvial Flood) 600000 Residential Property Count, by Return Period (Surface Water Flood) 350000 500000 400000 Residential Property Count, by Return Period (Fluvial Flood) 300000 250000 200000 Residential Property Count, by Return Period (Surface Water Flood) 300000 150000 200000 100000 100000 50000 0 20 YR 50 YR 75 YR 100 YR 200 YR 500 YR 1500 YR 0 20 YR 50 YR 75 YR 100 YR 200 YR 500 YR 1500 YR

Agenda Overview of the work LexisNexis and IBC have been doing Simon de la Hoyde - Head of Sales, Insurance, UK, Ireland and Canada, LexisNexis Risk Solutions Key findings from the research Richard Toomey - Manager, GIS Analytics, Insurance, LexisNexis Risk Solutions Best practices for using the data in pricing and underwriting Dermot McNally - Product Champion, Insurance, LexisNexis Risk Solutions JBA flood models and mapping methodology Helen Smith JBA Risk Management

Map View Platform Objective Act as a hub for all of this data Active Policy/Risk data Quote/what-if data Peril data sets Points Of Interest (Fire stations, key hazard locations etc.) Provides required geospatial processing capabilities Geocoding: finds the spatial position of a specified address Distance calculation Point-in-polygon (for peril scoring and other purposes) Accumulation calculations On-map visualisation Interactive selection tools, shape drawing Deliver this optimised for the Insurance industry Follow industry process Used directly by Insurance professional Workflow and tools unconstrained by traditional GIS approach

Agenda Overview of the work LexisNexis and IBC have been doing Simon de la Hoyde - Head of Sales, Insurance, UK, Ireland and Canada, LexisNexis Risk Solutions Key findings from the research Richard Toomey - Manager, GIS Analytics, Insurance, LexisNexis Risk Solutions Best practices for using the data in pricing and underwriting Dermot McNally - Product Champion, Insurance, LexisNexis Risk Solutions JBA flood models and mapping methodology Helen Smith JBA Risk Management