Nov 6, 2012
BASEL, 6 November 2012 – Aon Benfield, the global reinsurance intermediary and capital advisor of Aon plc (NYSE:AON), has launched a new flood model for Switzerland and Lichtenstein to quantify financial losses caused by riverine and lake flooding.
Flooding in Switzerland over the last two decades has caused human and financial losses across the entire country, for example in 1999, 2000, 2005 and 2007. As such, flood is considered to be the most significant natural peril in Switzerland.
In response, Impact Forecasting, Aon Benfield’s catastrophe model development centre of excellence, has created a model to calculate both probabilistic and historical loss estimates and in turn help insurance and reinsurance markets to better understand the risks they write in Switzerland.
The new tool reflects both locally-sourced data and the latest developments in hydrology and flood model development. Key features include:
Petr Puncochar, flood model developer at Impact Forecasting, said: “The hazard component of the Swiss flood model is based on advanced hydrodynamic modelling, which describes the real physical behaviour of floods with improved accuracy. In particular, this approach enables better understanding of the complex Swiss topography which includes various hydrological regimes from low land to alpine.”
Markus Hauswirth, CEO of Switzerland for Aon Benfield, added: “What makes this model unique is that it is a true Swiss model created with local hazard and loss data from our clients, Swisstopo and the FOEN. This ultimately means insurers can more accurately model historical events and future events, in addition to analysing per-location inputs or portfolios aggregated by postal code or canton.”
Alan Gregory, co-CEO of Europe, Middle East and Africa for Aon Benfield, commented: “Insurers and reinsurers are demanding more sophisticated and open tools to quantify and manage the risks facing their businesses. There is a growing desire for transparency driven by regulatory requirements and rating agency recommendations and the Swiss flood model meets these crucial criteria. It is an invaluable tool for both insurers and reinsurers, enhancing both the understanding and evaluation of flood risk in Switzerland.”
The model is integrated in ELEMENTS – Impact Forecasting's proprietary loss calculation platform – which allows the application of insurance conditions at varying levels and also quantifies different sources of uncertainty.
About Aon Benfield
Aon Benfield, a division of Aon plc, is the world’s leading reinsurance intermediary and full-service capital advisor. We empower our clients to better understand, manage and transfer risk through innovative solutions and personalized access to all forms of global reinsurance capital across treaty, facultative and capital markets. As a trusted advocate, we deliver local reach to the world’s markets, an unparalleled investment in innovative analytics, including catastrophe management, actuarial and rating agency advisory. Through our professionals’ expertise and experience, we advise clients in making optimal capital choices that will empower results and improve operational effectiveness for their business. With more than 80 offices in 50 countries, our worldwide client base has access to the broadest portfolio of integrated capital solutions and services. To learn how Aon Benfield helps empower results, please visit aonbenfield.com.
Aon plc (NYSE:AON) is the leading global provider of risk management, insurance and reinsurance brokerage, and human resources solutions and outsourcing services. Through its more than 62,000 colleagues worldwide, Aon unites to empower results for clients in over 120 countries via innovative and effective risk and people solutions and through industry-leading global resources and technical expertise. Aon has been named repeatedly as the world’s best broker, best insurance intermediary, reinsurance intermediary, captives manager and best employee benefits consulting firm by multiple industry sources. Visit www.aon.com for more information on Aon and www.aon.com/manchesterunited to learn about Aon’s global partnership and shirt sponsorship with Manchester United.
Ambiental is a leading Flood Risk Assessment, Surface Water Drainage and risk modelling consultancy. The company operates internationally and produces high detail flood risk data, flood hazard maps, perils risk data, flood modelling software and reports for insurance companies, the land and property sector, engineers, utilities and city council planning departments. Ambiental’s solutions help clients to save time, reduce risk and mitigate against flood and other environmental impacts. Visit www.ambiental.co.uk for more information.
Ambiental’s core product “Flowroute-iTM” is a highly efficient, innovative, fast and easy-to-understand solution for predicting the depth, duration and extent of flood risk to individual properties. To date, Ambiental has created and distributed river, storm-surge and surface water (pluvial) flood models for at-risk areas in the UK, USA, Latin America, Europe, Australasia and Asia. Ambiental’s services have also been employed by risk managers, business continuity managers and documentary film makers with features televised on BBC News, Newsnight and UK Channel 4 (Dispatches – Britain Under Water). Ambiental’s expert opinion is regularly sourced and published in leading trade journals.
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