Willis Re, the reinsurance division of Willis Towers Watson (NASDAQ: WLTW), a leading global advisory, broking and solutions company, today launches a new Indonesia Flood model to provide a comprehensive and robust view of risk for the region. Developed jointly with the Willis Research Network (WRN) partner, National University of Singapore (NUS) Tropical Marine Science Institute (TMSI), the new model provides a detailed assessment of the flood risk countrywide including the industrial estates in West Java which are prone to frequent flooding.
The new Willis Re Indonesia Flood model is fully probabilistic based on 42,000 events covering major river catchments in Indonesia. It has been developed using high resolution hydrological and hydraulic models, and with the latest and most relevant science, including a 37 year-record of global rainfall observations and local rain gauge data. The flood model validates well against major floods including the 2007 and 2020 events. It is calibrated using an up-to-date proprietary Indonesia-wide industrial exposure database, using insurance and reinsurance market loss claims.
“Taking advantage of our in-house expertise and our broader academic partners in the WRN, we have developed a leading-edge flood risk analysis capability. We are integrating the tool with ongoing research projects within the WRN, which continues to explore the influences of climate change on extreme flood. This will help insurers develop innovative solutions with relevant contingency planning that can better prepare and protect businesses and communities, increasing resilience to catastrophic flooding,” said Tai Hui Yen, Head of Analytics, Asia Pacific, Willis Re
“The combination of climate variability and urban development have amplified the flood risk in Indonesia. This continues to present significant problems for insurers with risks both inside and outside Jakarta. It is crucial to provide the insurance market with a robust and sophisticated model that can help insurers quantify the potential flood risk based on strong and local scientific understanding.
The new Willis Re Indonesia Flood model allows our clients to have an accurate view on the potential losses so that they can adopt clearer risk appetites, respond to regulatory pressures and make more informed risk transfer decisions on their insurance portfolios,” said Mark Morley, Managing Director of Asia Pacific at Willis Re.