Specialist insurer New National Assurance has signed an annual agreement with flood risk modeller, JBA Risk Management (JBA), for the use of its flood data for South Africa.
The data, which incorporates climate change intelligence, will be used by the insurer to underwrite property-risk for both personal and commercial lines. Additionally, the insurer said it has decided to make the flood maps accessible to its network of brokers and delegated authority underwriting agents.
Through JBA’s FLYvis online platform, the insurer and its brokers will be able to access detailed 30-meter resolution maps for both baseline and future insights into surface water and river flooding, as well as pricing data, for a range of return periods for the entire country of South Africa, New National Assurance noted.
JBA Risk Management has revealed that flood risk is a growing concern in South Africa and it could experience a 50% increase in Annual Average Losses from inland flood by 2050 if high-emission climate change scenarios are not mitigated.
The devastating April 2022 floods in KwaZulu-Natal (KZN) resulted in the loss of more than 440 lives, the destruction of over 4,000 homes, displacement of 40,000 people, and critical infrastructure damage costing more than 17 billion rand.
“In a changing climate flood risk intelligence is an essential element to understanding the challenges of the future. The high-resolution global flood maps and data from JBA Risk Management will provide us with real insight into flood risk across the country now and in future scenarios differentiating us in the market. Extending access to these tools to our brokers and underwriting intermediaries will ensure they can provide their clients with critical insights into their own exposures and help them plan for the future,” Athaf Rajab, New National’s Head Core Operations KZN commented.
“New National has shown real foresight in opening up our data to its broking partners and underwriting agencies. We are delighted to be working with them. The reality is that climate change is bringing real change, and the more flood risk is understood the more individuals and businesses will have insight into the risks they face, will be able to plan ahead, identify insurance solutions and where appropriate take mitigating action,” Haydn Marchant, Re/insurance Specialist, JBA Risk Management added.
