FEMA Selects AIR Worldwide's Flood Model to Better Understand the NFIP's Risk to Flood Loss and Improve Resilience from Extreme Events
BOSTON, Nov. 13, 2017 — Catastrophe modeling firm AIR Worldwide announced that the Federal Emergency Management Agency (FEMA) has selected AIR’s innovative Inland Flood and Storm Surge Models for the United States to better understand the National Flood Insurance Program’s (NFIP) loss potential. AIR Worldwide is a Verisk (Nasdaq:VRSK) business.
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 is looking forward to assisting FEMA in its efforts to create safer, more resilient communities by reducing loss of life and property and lessen the financial impact of disasters on the nation,” said Rob Newbold, executive vice president at AIR Worldwide. “Our 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.”
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.
About AIR Worldwide
AIR Worldwide (AIR) provides risk modeling solutions that make individuals, businesses, and society more resilient to extreme events. In 1987, AIR Worldwide founded the catastrophe modeling industry and today models the risk from natural catastrophes, terrorism, pandemics, casualty catastrophes, and cyber attacks globally. Insurance, reinsurance, financial, corporate, and government clients rely on AIR’s advanced science, software, and consulting services for catastrophe risk management, insurance-linked securities, site-specific engineering analyses, and agricultural risk management. AIR Worldwide, a Verisk (Nasdaq:VRSK) business, is headquartered in Boston with additional offices in North America, Europe, and Asia. For more information, please visit www.air-worldwide.com.