Side effects of floods important for risk modelling
Also, how the ground reacts to floods, rainfall runoff models, defense models employed - all of these factors are extremely important when discussing about modelling the flood risk according to the RMS official.
This is why any flood model should be based on consistency in risk selection, pricing, portfolio management and capital requirements. From risk selection and pricing to reinsurance decision and capital requirements - advanced modelling is a modern tool for pricing / reinsurance and capital requirements (Solvency II).
"Floods don't care about political borders and therefore science offers solutions for modelling the flood risk. The process starts with the first drop of water falling from the skies". This is, in fact, a key message included in the IIF 2015 presentation of Dr. Laurent MARESCOT, Director, RMS, Switzerland. Dr. MARESCOT took the stage with a technical topic of Private sector flood insurance: advanced modeling and data for risk management, selection and pricing.