Better flood data in Asia can help close protection gap
Flood exposure data in Asia poses challenges due to the lack of precise location information, which in turn is making it difficult to underwrite this risk and close the protection gap, Iain Willis, managing director of JBA Risk Management Singapore, told SIRC Today.
“It’s common for many Asian countries to record risk management exposure data only at a district or province level,” said Willis.
“In contrast, in Europe and North America we now see precise coordinate data about individual property location as well as structural attributes. It’s also worth mentioning that for many countries in Asia, good quality exposure data is available, for example in Singapore, Hong Kong, and Japan.”
Flood is the most prominent and costliest natural hazard risk in Asia from a re/insurance perspective, said Willis.
The World Resource Institute estimates that around 9.5 million people are affected by floods every year in Asia.
A 2016 JBA study on the future risk in Asian cities showed that there could be a 30 percent increase in those at risk by 2030—not due to an increase in the flood risk but because of demographic changes in the location and size of the Asian population.
JBA Risk Management has been focusing on modelling flood risk for every country in the world, and Willis said it is now in a position to support insurers in technical flood pricing anywhere in Asia.
“The positive news is that I also see an improving trend in data collection in many countries as they start to see the benefits of collecting this data in their own flood risk management practice,” said Willis.
In order for the flood protection gap to be reduced in the region, he suggested, there are many aspects that need to be coordinated.
“The most successful initiatives tend to be a mixture of governments, non-governmental organisations and the insurance market. The protection gap is often a consequence of policy, hazard, and culture within a country, so education is also a large part of the solution,” he said.
“I’ve seen evidence that when people have a shared view and understanding of the risk, and all stakeholders are focused on making a more sustainable flood risk management programme, it’s possible to close the protection gap.
“Modelling is a big part of this as it helps independently appraise the risk for all the stakeholders.”
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