Captive Intelligence, in partnership with Previsico and Descartes, has launched its first technical report, focused on the challenges faced by businesses and organisations from flood risk and the insurance solutions some are turning to.
Executive Summary
Extreme weather patterns are changing, and areas once considered low risk are now vulnerable to severe flooding.
Losses from flooding worldwide amounted to $325bn over the last five years, of which only $70bn was insured. In the United Kingdom alone, it is estimated that the total number of properties in areas at risk of flooding from surface water could increase from 4.6 million to 6.1 million – a rise of 30% between 2040 and 2060.
READ AND DOWNLOAD THE REPORT HERE
Despite the growing threat, many organisations choose to go uninsured, either assuming they will not be impacted because they have not previously suffered an event, or because the commercial market is viewed as inefficient and prohibitively expensive.
As insurance markets have grown increasingly cautious, often raising deductibles or excluding flood coverage altogether, large protection gaps for flood have been left.
Understanding flood risk means recognising that no business is immune – proactive planning and mitigation are key to avoiding costly disruption and loss.
In this report, From Exposure to Resilience: Captives, Parametrics, and the Future of Flood Insurance, Captive Intelligence explores how shifting weather patterns are causing an unprecedented increase in global flood risk, and how organisations can mitigate and finance the impact through innovative risk solutions.
Case studies, such as Balfour Beatty Vinci’s HS2 project, show how predictive tools can prevent asset losses and improve resilience.
Technologies such as flood forecasting and IoT sensors are giving organisations the solutions to enhance their resilience by providing early warnings and real-time data, while parametric policies are emerging as an alternative to the traditional market; offering quick, transparent payouts initiated by pre-defined triggers such as rainfall intensity, river height, or water depth.
When combined with captives, parametric solutions can become more effective – allowing insureds to formally retain a portion of flood risk, fund prevention measures, and smooth out “basis risk”.
This partnership allows companies to design tailored coverage that aligns with their risk profiles and changing local flood environment.
Read and download the full report here.