JBA Risk Management, a UK-based flood risk specialist, has introduced a new inland flood model for Australia, offering insurers and risk professionals enhanced flood risk analysis.
The launch comes as insurers continue implementing reforms following the 2022 South-East Queensland and Northern Rivers floods, which generated Australia’s largest insured flood losses.
The model provides high-resolution flood mapping, with a 5-metre resolution for major urban centres such as Sydney, Brisbane, and Melbourne, and a 30-metre resolution for other regions. It integrates hydrodynamic and statistical approaches to assess pluvial and fluvial flooding from both tropical and non-tropical storm events.
JBA’s modelling incorporates 2D hydraulic simulations, terrain mapping, and sea level projections, along with flood defence data, to provide insurers with a more detailed view of flood risk. The model also includes forward-looking assessments for 2050 and 2080, based on climate scenarios RCP4.5 and RCP8.5, enabling insurers to evaluate potential future flood exposure. A sensitivity analysis tool allows users to explore multiple risk scenarios.
Built using Oasis-enabled technology, the model allows for customisation, enabling insurers and risk professionals to modify event sets, hazard parameters, and vulnerability data. It is available via NASDAQ’s NMRC platform and IF Elements.
Mansi Kalra (pictured), managing director of JBA Risk Management Pte, said the model provides new levels of flood risk insight to support portfolio management, capital planning, and regulatory compliance.
“Our Australia Flood Model complete with the new sensitivity tool is a first for the Australian market, providing comprehensive coverage and insight at a level of detail not previously available, enabling our users to better evaluate climate change impacts on flood risk for better portfolio planning, capital management, and regulatory compliance. Feedback from the market has already been extremely positive,” she said.
Industry leaders have highlighted the potential benefits of the model for flood risk assessment.
James Knight, head of APAC at View of Risk Advisory, Aon, said: “We find the modelled expectations of the floodplain match up well to some of the more major observed flooding events that we’ve experienced locally in recent years.”
Stephen Lau, principal at Finity, said flood risk remains a key concern in Australia, highlighting the significance of the model.
“The insurance, banking, corporate and government sectors turn to Finity for advice on how to understand, underwrite, manage and mitigate flood risk: To do this, JBA’s high resolution flood models are crucial. We look forward to the launch of JBA’s Australia Flood Model, which will enable even deeper insights for our clients by offering a consistent view of risk across the entire risk transfer chain,” he said.
While flood risk models continue to advance, insurers remain focused on implementing reforms following the 2022 flood crisis.
In early 2023, Deloitte conducted “A New Benchmark for Catastrophe Preparedness” for the Insurance Council of Australia (ICA), outlining seven key recommendations aimed at strengthening claims processing, preparedness, governance, and collaboration with government agencies. Meanwhile, a federal inquiry led by MP Daniel Mulino produced “Flood Failure to Future Fairness,” recommending 86 changes to improve insurers’ management of flood-related claims.
The ICA’s latest report evaluated insurers’ progress on implementing the recommended changes. While insurers have made improvements in some areas, progress is uneven across the sector. Some recommendations have been fully implemented, while others – including technology upgrades and process improvements – remain ongoing.
