Willis Re has launched a new flood model for the Middle East and North Africa (MENA) region designed to allow re/insurers’ flood risk to be quantified using a catastrophe model.
The model currently covers Morocco, the United Arab Emirates, and the Kingdom of Saudi Arabia, with further releases for Oman, Qatar and Egypt during the third and fourth quarter of 2021.
Development was undertaken as a collaboration between Willis Re’s in-house peril experts and flood specialists, KatRisk; resources were provided by Willis Research Network (WRN).
Willis Re says the latest flood hazard layers and loss aggregation methodologies are used to generate location level losses as well as portfolio outputs for a 50,000-year simulation period.
The main business applications of the MENA flood cat model include the structuring and pricing of reinsurance layers, assessing capital adequacy and responding to regulatory solvency requirements
“We are extremely pleased to announce the addition of the MENA flood model to our toolkit. Continued commitment to our clients and the region requires us to enhance our capabilities relating to the more tangible and frequently observed perils,” Natalie van de Coolwijk, Chief Executive Officer, Middle East and Africa.
“These capabilities will only become more relevant as the landscape evolves and the effects of climate change become more apparent. Building a more robust view of risk for perils such as flood means we can tailor fit-for-future reinsurance programmes for our clients and more scientifically quantify impact on claims and reinsurance costs.
“Being able to give clients more comfort and certainty around reinsurance cover and costs is at the core of our purpose, ultimately contributing towards a better protected and more resilient insurance industry.”
ChemsEddine Kassali, Regional Director, Middle East and North Africa, added, “The Willis Re team proves once again its full commitment and dedication to the MENA region with our latest model release adding to our already well-established and successful MENA Earthquake model.
Dr Tina Thomson, Regional Director, Head of Catastrophe Analytics EMEA West-South, commented, “The newly developed MENA Flood Model is Willis Re’s response to a re/insurance industry ever more focused on the need to understand and fully manage risk, exposure, and climate change effects on business, even in geographical areas traditionally not serviced by commercially available Cat Models.
“Our work in this region demonstrates our commitment to clients in providing key insights for improved risk and volatility mitigation on reinsurance programs while enabling sensitivity testing for potential climate change impacts.”