The number of countries in which flood events were reported in EM-DAT was less than 50 until mid-1980, reaching around 80 after 2000. Between 1960 and 2013, value of reported economic losses showing increasing trend (6.3 percent per year) (Masahiro Tanoue, Yukiko Hirabayashi, Hiroaki Ikeuch, ‘Global Scale river flood vulnerability in the last 50 years’, 2016).
For Mongolia, National Statistics Organization statistics shows intense rain and flood frequency has also been increasing each year and according to National Emergency Agency data, the flood peril is the second most frequent peril to Ulaanbaatar, the capital city of Mongolia.
It is now usual for international insurance and reinsurance companies to calculate risk accumulation in their portfolio to calculate possible losses due to particular peril such as natural catastrophe, cyber risk, terrorism and explosion. Various methods, software and platforms have been developed and leading reinsurance companies are investing to those tools.
Property accumulation in Ulaanbaatar flood zones We developed method of calculating accumulated value and total possible costs that insurance company may incur due to flood peril. Mathematical, geographical software, flood risk scenarios and other methods in our calculation.
Based on our calculation, insurance and reinsurance companies can measure their accumulated risk and understand their potential exposure to flood peril and take appropriate protection measures based on this insight (whether purchasing reinsurance protection, reciprocity, CAT Bond etc). This work enables insurance and reinsurance companies to overcome flood catastrophe therefore the side benefit is the increased trust of public in local insurance industry.
In addition, during underwriting process underwriters can check whether a risk is located within flood risk zone before quoting and risk managers of insurance companies can check accumulated values on daily basis
Contact us should you need more information.