Aon has announced significant updates and readjustments to its Thailand flood catastrophe model in an attempt to improve understanding of the peril and help “insurers increase resilience for businesses and communities.”
Aon highlights Thailand’s increasing exposure to frequent floods as a result of its growing population and economy. The region was devastated by extensive flooding in 2011, inflicting more than $15 billion of insured losses.
The updated tool builds on the firm’s 2012-launched model, claiming it leverages scientific advances in hydrological, hydraulic and statistical modelling.
Aon’s catastrophe and development team, Impact Forecasting, produced the model in light of the Thai government’s significant flood protection and mitigation measures since 2011, deciding to invest in a tool capable of capturing the most up-to-date flood defense information for a more accurate flood loss evaluation.
It’s expected the model will support insurers currently underwriting in Thailand – plus those looking to grow into the region – with insights to drive their reinsurance purchases and manage their portfolio while using the data to underwrite effectively and monitor peak accumulations.
Capabilities unique to the new model include high resolution elevation data, over 700 improved vulnerability classes with additional modifiers for construction types, data from over 200 gauging stations and multi-sourced information about flood protection measures.
Commenting on the announcement, Panchit Ekaraphanich, Head of Treaty in Thailand for Aon’s Reinsurance Solutions business, said, “This is an exciting time for the Thai re/insurance market to play a critical role in supporting our ever-evolving economy. Following the 2011 floods, the industrial sector is bouncing back but with a higher awareness of the potential risks.
“The market needed a way to more accurately assess and mitigate these risks so the launch of the updated flood model from Impact Forecasting is vital to give insurers the confidence to underwrite and in turn support businesses and communities in the region.”
Flood model developer at Aon’s Impact Forecasting team, Himavant Mulugu, added, “Our goal has been to produce one of the most detailed and advanced models in south-east Asia that shows how data and analytics can have an impact in the market by opening up new products and possibilities.
“A notable feature of the model is two scenarios of the 2011 floods: the situation as was in 2011 and the situation today, taking into account new flood defenses, to enable more detailed insights and enhanced planning for insurers.”