Gaps in US flood data may create losses for insurers
US underwriters need a more detailed understanding of flood risk if they are to capitalise on the growing private insurance market, according to global flood mapping specialist JBA Risk Management.
"The US catastrophe risk market has understandably been focused on hurricane and earthquake which are relatively less complex to model than flood,” said Matt Reid, managing director JBA Risk Management USA. "However, with the private flood insurance market opening up, there are gaps in most datasets which can lead to costly mistakes for underwriters looking to assess their risk."
Reid was speaking at the RAA conference in Orlando, Florida, which marks the launch of JBA Risk Management’s expansion in the US. Flood is the most widespread and prevalent peril in the US, but, according to JBA Risk Management, the insurance market does not have widespread access to detailed, up-to-date, high quality information that considers all sources of flooding.
JBA operates in the UK and Canada, and it now aims to grow its presence in the US through its new office based in California.
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