The Federal Emergency Management Agency (FEMA) has selected AIR Worldwide’s Inland Flood and Storm Surge risk models for the United States to help it to get a better understanding of the National Flood Insurance Program’s (NFIP) loss potential.
By taking up the AIR flood risk model, FEMA will benefit from a probabilistic approach to modelling flood risks, helping it to analyse the NFIP’s risk exposure and the potential payouts to property owners.
It will also help FEMA when it comes to the renewal of its flood reinsurance program, something that may be expanded at the next opportunity after the major losses the NFIP has suffered, particularly from hurricane Harvey.
AIR’s flood risk model will also be used in the evaluation of actuarially sound rates for NFIP insurance policies and to analyse the impacts of major flooding events in real-time.
“AIR is looking forward to assisting FEMA in its efforts to create safer, more resilient communities by reducing loss of life and property and lessen the financial impact of disasters on the nation,” commented Rob Newbold, executive vice president at AIR Worldwide. “Our models and software will help FEMA understand the NFIP’s exposure to flood loss, which will not only help evaluate effective insurance and risk-transfer alternatives but also assess potential damage and losses as floods occur.”