LONDON, 5 July 2013 – Impact Forecasting, the catastrophe model development center of excellence at Aon Benfield, has launched a scenario model for the recent Alberta floods in Canada. Using event footprints that outline the extent of the flood enables insurers to obtain a more realistic estimate of their specific exposure – just days after the event. Aon Benfield is the global reinsurance intermediary and capital advisor of Aon plc (NYSE:AON).

The footprint of the flood event is based on an image from SERTIT distributed by PERILS. The footprint is then manually processed to correct areas originally covered by clouds and converted to ELEMENTS format so it can be uploaded to the Impact Forecasting’s loss calculation platform. In ELEMENTS the hazard is then superimposed onto the insurer’s portfolio to calculate exposed sums insured.

Steve Jakubowski, president of Impact Forecasting, commented: “This scenario model illustrates the global scope of an open platform, such as ELEMENTS, where third party data can be used to quantify clients’ exposure in areas with no existing models available prior to the event."

Martin Kadlec, flood model developer at international Impact Forecasting, added: “For the Alberta floods, ELEMENTS provides more accurate results based on the proportion of sums insured affected rather than the entire sums insured for each administrative unit or postal code.  Additionally, the affected sums insured within each area do not blindly follow the location of the floods, but are weighted by population density data. Both of these parameters make this model more beneficial than simple GIS based analyses.”

The footprint is also available on ImpactOnDemand® - Aon Benfield’s highly innovative and versatile platform that enables clients to visualize and quantify their exposures to risk, in addition to performing sophisticated, detailed data analysis to drive insightful business decisions.

The new Alberta tool builds upon Impact Forecasting’s suite of new scenario models which also enable insurers and reinsurers to validate existing probabilistic models and examine specific events in territories where no models currently exist. In addition, firms can monitor exposure in key areas and provide more detailed information for reinsurance purchase and claims management.

Ends

PICTURED: Map of flooded area in the city center of Calgary (Footprint by Sertit and background map from Google Earth, image © 2013 Digital Globe)

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About Impact Forecasting® LLC

Impact Forecasting is a catastrophe modeling center of excellence whose seismologists, meteorologists, engineers, mathematicians, finance risk management and insurance professionals analyze the financial implications of natural and man-made catastrophes around the world.  Impact Forecasting’s experts develop software tools and models that help clients understand risks from hurricanes, tornadoes, earthquakes, wildfires and terrorist attacks on property, casualty and crop insurers and reinsurers.  To find out more about Impact Forecasting® LLC, visit www.impactforecasting.com.

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 a 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.

About Aon

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 65,000 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.