Guy Carpenter launches Philippines flood model
Guy Carpenter & Company announced the launch of its new Philippines Flood Model. The probabilistic model provides countrywide coverage and enables insurers to assess flood exposure, one of the most frequently occurring natural hazards in the region.
The Philippines Flood Model is based on a 10,000-year stochastic catalog simulating both fluvial (riverine) and pluvial (rainfall) flooding, including the impact of typhoon-induced precipitation. The fluvial component of the hazard was developed using leading-edge hydrological and hydraulic modeling to simulate river discharges across the river network in the country. Pluvial flooding is simulated using an in-house methodology accounting for local climate conditions, soil type, land use, and topography.
The enhanced model output offers clients great modeling flexibility. It can produce event-loss tables, occurrence exceedance probability curves, and average annual losses at virtually any level of aggregation. The model is powered by the Oasis Loss Modelling Framework (Oasis LMF), an open-source catastrophe modeling platform designed and built by the (re)insurance industry. Outputs can be leveraged using Guy Carpenter’s MetaRisk® platform to analyze reinsurance structures and for capital modeling.
“Guy Carpenter has long been a pioneer in flood modeling, one of the costliest but least quantified perils globally. Our Philippines model is the latest in a series of flood modeling tools developed to expand our risk management capabilities in Asia Pacific.” – Mark Weatherhead, Head of Model Development, Guy Carpenter.
“The Philippines have a long history of devastating flood events, and the combined impacts of climate change and rapid urbanization are aggravating the problem. Our model provides clients with best-in-class capabilities to quantify flood risk and make informed business decisions, both for internal risk management purposes and for the placement of reinsurance.” – Bengt Johnsen, Head of South East Asia and Korea Region, Guy Carpenter.