General Insurance Article - Cost of floods now rivals earthquakes

 Flood losses are increasing at an alarming rate while the insurability of floods provides unique challenges for the industry, according Swiss Re's latest report, Flood – an underestimated risk: Inspect, inform, insure. Coinciding with the release of the publication is the release of a flood app, which packages Swiss Re's flood expertise into an entertaining and interactive medium for iPads.

 No other natural catastrophe impacts as many people as flooding with an estimated 500 million people affected every year. Insured flood losses are also increasing significantly; 1970's annual claims were between USD 1–2 billion, whereas insured flood losses amounted to USD 15 billion in 2011. Recent flood events in Thailand, Australia and the Philippines have shown that floods are now rivalling earthquakes and hurricanes in terms of economic losses.

 However, awareness of flood risks and their impact is still relatively low. Swiss Re's publication Flood – an underestimated risk aims to close this knowledge gap.

 Matthias Weber, Swiss Re Group Chief Underwriting Officer, says: "With this publication we want to raise greater awareness of floods, their risks and the role of insurance in addressing them. We show what it takes to tackle the challenges in flood insurance and what successful solutions might look like for homeowners and companies."

 Flood insurability is difficult but possible