Model provides a detailed assessment of the flood risk countrywide, including the industrial estates in flood-prone West Java
Willis Re has launched a flood model for Indonesia 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 model provides a detailed assessment of the flood risk countrywide including the industrial estates in West Java which are prone to frequent flooding.
“The combination of climate variability and urban development have amplified the flood risk in Indonesia,” he added. ”This continues to present significant problems for insurers with risks both inside and outside Jakarta,” said Tai Hui Yen, head of analytics, Asia Pacific, Willis Re.
The hope is the model will ”help insurers develop innovative solutions with relevant contingency planning that can better prepare and protect businesses and communities, increasing resilience to catastrophic flooding,” she added.
The model is fully probabilistic based on 42,000 events covering major river catchments in Indonesia and has been developed using high resolution hydrological and hydraulic models, and 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.