2017 was a game-changing year for the insurance industry. Between the catastrophic deluge of water dumped in Texas from Hurricane Harvey and the unprecedented underinsurance rates of families whose homes and lives were affected, there’s been an increased focus on flood risk by both insurance and reinsurance companies alike.
Over the course of the year, there were 16 individual weather and climate disaster events exceeding $1 billion. Harvey and Irma flooding alone cost an estimated $69 billion to $105 billion in residential and commercial damage.
A detailed analysis by CoreLogic in Texas and Louisiana from the rainfall of Harvey showed that about 70% of the flood damage was uninsured; in the wake of Irma, CoreLogic found that 80% of flood damage was uninsured. After seeing the devastation of the past year, FEMA’s former National Flood Insurance Program (NFIP) Director Roy E. Wright said, “Recent flooding disasters make even clearer the need for FEMA to share more of the financial risk from flood insurance with the private markets.”
Leading global risk and reinsurance specialist Guy Carpenter has now licensed the CoreLogic U.S. Inland Flood Model, further expanding and enhancing the foundation of their flood risk assessment capabilities. The licensing serves to cement another building block in the 20+ year-long Guy Carpenter/CoreLogic relationship.
The CoreLogic US Inland Flood model enables clients to make informed portfolio risk management and underwriting decisions on flood risk, powered by the most complete, current, connected data available. It also expands modeling objectivity and flood analytics expertise of clients like Guy Carpenter.
CoreLogic has long been a leader in assessing flood risk in several industries, with a full suite of tools to enable clients to manage all sources of flood risk, from Point to Portfolio®, from flood determinations for lending purposes to catastrophic flood risk assessments for insurance and reinsurance purposes and beyond.
While the 2018 hurricane season has generally been tamer than 2017 thus far, the appearance of a Pacific hurricane in uncommonly warm waters by the name of Hurricane Lane as well as the rip-roaring Atlantic basin storm Hurricane Florence serve to share the same message—it’s important to know your risk in order to accelerate recovery.
To learn more about the CoreLogic U.S. Inland Flood Model or any of the other 180+ global catastrophe models, visit stage.corelogic.com/solutions/catastrophe-risk-management.aspx.
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