Ping An Insurance (Group) Company of China has entered into a flood maps licensing agreement with UK-based JBA Risk Management in a move aimed at enhancing its underwriting and risk management capabilities.
The collaboration will see JBA’s high-resolution flood maps integrated into Ping An’s Digital Risk System (Ping An DRS), which operates within Ping An property and casualty (P&C). The system is expected to improve flood risk assessment, inform risk-based pricing, and support accumulation risk analysis.
This marks JBA’s first partnership of its kind in China and follows the company’s recent enhancements to its China Flood Maps, particularly in areas such as Hong Kong, the Pearl River Delta, and the National Capital Region. The updated maps incorporate detailed assessments of infrastructure developments in Eastern China, the news release noted.
Ping An’s decision to adopt JBA’s flood data followed an extensive review, which found a 60% to 70% match between past real-life flood events and JBA’s predictive flood models.
Dr. Xiao Jing, chief scientist at Ping An Group, emphasized the importance of data-driven innovation in risk management.
“With the increasing severity and frequency of flood events in China, this partnership enhances our ability to make data-driven decisions, ensuring robust risk-based pricing and effective management of accumulation risks,” Xiao said. “We look forward to leveraging this cutting-edge technology to better protect our customers and contribute to a more resilient future.”
Simon Waller, executive chair of JBA Risk Management, noted the significance of the collaboration.
“We are delighted that Ping An, a globally recognized, technology-driven financial group, has chosen our robust, science-led flood data to inform its risk-based pricing, accumulation, and reinsurance processes,” Waller said.
The deal comes as China experiences severe flooding. Most recent was in Hunan province, where the tail end of Typhoon Gaemi has caused devastation. Heavy rains and mudslides have resulted in at least 22 deaths, with thousands of residents evacuated from Zixing city and Hengyang. More than 1,000 homes have been damaged, and major road collapses were reported. Some areas recorded up to 645mm (25 inches) of rainfall within 24 hours. The flooding has overwhelmed infrastructure, leading to dam breaches and widespread agricultural losses.
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