InsurTech Previsico today announces the launch of its live flood forecasting alert service, in partnership with Nexus Alpha USA, a hub for innovation in the US, to mitigate surface water flood losses for insurers and their customers in the US, one of the world’s most affected markets.
Previsico’s initial focus will be on New York, which has experienced serious flood issues and losses over the years, including last year, when a state of emergency was declared after it was hit by record rainfall and deadly flash floods as a result of Tropical Storm Ida. Other states, such as Nevada, where Las Vegas recently suffered multiple and lethal flash flooding, will follow as demand increases.
Jonathan Jackson, Previsico’s CEO, said: “Our move into the US market demonstrates our determination to continuously improve and extend our unique flood forecasting service. Working in partnership with the US insurance market, we will be able to save people, properties, and businesses from the devastating impacts of flooding by mitigating its impact, particularly the effects of surface water.”
Today, half of all US economic losses from flood are due to pluvial flooding (Nature.com 2022). At the same time, current flash flood warnings lack actionable data, as they cover large geographies, which generate many false alarms with a resultant lack of action. In addition, a threefold increase in damage to commercial property from climate-related risk is now predicted by risk analysts XDI 1000 by 2050.
Sam Hollis, Co-founder and CEO of Nexus Alpha USA, said: “At Nexus Alpha, we work with many innovative businesses. Uniquely, Previsico’s system offers 48-hour forecasts every three hours at specific location levels. As soon as the system identifies a location is at risk of surface water flooding, warnings are sent out.
“This gives insurers the ability to alert customers of immediate risks to their properties, so they can move valuables to higher ground or set up temporary flood defences in the case of an imminent flood – a win-win for insurers and their customers.”
Previsico has been on a fast-track since launch in 2019, following 20 years of academic research, and is now supporting brokers, insurers Liberty and Zurich, and their clients, with ‘live actionable flood warnings’ for surface water flooding to mitigate losses. Working with Lloyd’s Lab, underwriters agreed Previsico’s warnings can mitigate 70% or more of commercial loss for businesses with a flood plan and resilience measures.
Previsico’s next generation flood forecasting solution now uniquely brings together IoT sensors, the latest weather data from IBM’s Weather Company, and advanced flood modelling capabilities to address the increasing issue of surface water flooding for insurers, their major corporate clients, and customers.