The Federal Emergency Management Agency (FEMA) has selected AIR Worldwide’s innovative Inland Flood and Storm Surge Models for the United States to better understand the National Flood Insurance Program’s (NFIP) loss potential.
Leverages probabilistic modeling approach
In licensing the AIR flood model, FEMA is leveraging a probabilistic modeling approach to assess the flood program’s overall risk and potential payouts to property owners. The model will also be used to help the NFIP evaluate actuarially sound rates for its policies and to assess the impacts of major flooding events in real time.
AIR models and software will help FEMA understand the NFIP’s exposure to flood loss, which will not only help evaluate effective insurance and risk-transfer alternatives but also assess potential damage and losses as floods occur. Ultimately, these tools will also support FEMA in its efforts to create safer, more resilient communities by reducing loss of life and property and to lessen the financial impact of disasters.
The AIR U.S. Flood Model, released in 2014, provides the most detailed probabilistic tool available for assessing and managing inland flood risk at high resolution for locations on and off the many and varied river networks and floodplains across the United States. Insurance companies are currently using AIR’s inland flood model to offer flood insurance products in the private market.
For more information about AIR, a Verisk business, visit our website.