Flood Model Tool To Predict Canadian Risks

Wave after wave of flooding and related water damage, be it from sewer backup situations or spillover from creeks and rivers seem to keep coming. Since 2013, across the Greater Toronto Area, Southern Alberta and Burlington, Ontario, efforts to rebuild flooded private and commercial properties have local contractors struggling to keep up with demand.

Case In Point: A Catastrophic Summer Commute

For many Torontonians, the early evening storm of July 8, 2013 is still on their radar. Canadian Underwriter notes, “Published reports in 2013 indicated that 126 mm of rain fell at Toronto-Lester B. Pearson International airport July 8, while Environment Canada indicates the normal rainfall for the entire month of July is 74.4 mm. That storm caused sewer backup damage, flooding on major expressways, a major power failure resulting from the flooding of a transformer station and GO Train commuters to be stranded for hours after the Don River rose on to a track.” 1

Flood Model Tool For Insurers and Reinsurers

The new Canadian tool was created by Impact Forecasting LLC, “a catastrophe model development center of excellence within Aon Benfield whose seismologists, meteorologists, hydrologists, engineers, mathematicians, GIS experts, finance, risk management and insurance professionals analyze the financial implications of natural and man-made catastrophes around the world. Impact Forecasting’s experts develop software tools and models that help clients understand underlying risks from hurricanes, tornadoes, earthquakes, floods, wildfires and terrorist attacks on property, casualty and crop insurers and reinsurers.” 2

A Custom Fit For Canada

According to Insurance Business, the fully probabilistic model was developed over the course of 24-months and is specific enough to pinpoint individual locations. The recent article also notes that the Aon Benfield tool will include:

  • “Geographical coverage encompassing 98% of Canada’s population
  • Hazard content from locally-sourced spatial and hydrological data collectors
  • Assessment of prospective damage based on seven other Canadian flood models and information from local client claims
  • Incorporation of scientific developments such as advanced hydrological data processing
  • Synchronization with ELEMENTS, Impact Forecasting’s loss calculation system, so data can be leveraged for underwriting purposes” 3
    According to a detailed article, the new “”

According to a detailed Canadian Underwriter article, the new “Aon Benfield flood model covers 98% of Canada’s population with resolution of up to 10 metres.” 4

Underwriting technology is always evolving. A flood model tool provides more information about your property risks. Talk to an ALIGNED Insurance Advocate about insurance options for your business.

Sources: 1,4 Canadian Underwriter 2 Aon 3 Insurance Business   Aon Benfield Analytics

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