Guy Carpenter unveils probabilistic flood model for Indonesia

Reinsurance broker Guy Carpenter & Company, a wholly owned subsidiary of Marsh & McLennan, has launched a new flood model for Indonesia that suffers from severe flood risk due to its climate and faces a significant insurance gap. The fully probabilistic model provides countrywide coverage and enables insurers to assess their exposure to floods, the most frequently occurring natural peril in the country. Guy Carpenter said the Indonesia Flood Model is based on a 10,000-year stochastic catalogue simulating both fluvial (riverine) and pluvial (rainfall) flooding. The fluvial component of the hazard was developed using...