Aviva flood model Embedding GIS in day to day decision making Simon Black Head of Data & Statistics, Aviva Plc.

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Transcript Aviva flood model Embedding GIS in day to day decision making Simon Black Head of Data & Statistics, Aviva Plc.

Slide 1

Aviva flood model
Embedding GIS in day to day decision making

Simon Black
Head of Data &
Statistics, Aviva Plc


Slide 2

How did it all start?
• Autumn 2000
• £200m Storm and flood claims
• Similar events expected to be more
frequent and more costly
• Wanted something to help predict which
properties were most at risk

• Nothing available


Slide 3

NEXTMap Britain

+
Elevation Model

+
Radar Image

Flood data from CEH

Original model created with the help of:
Intermap

JBA

=

HR Wallingford
The Centre for Ecology & Hydrology
ESRI
©Intermap Technologies Inc

Flood Risk
Assessment


Slide 4

Stakeholder Management

Introducing GIS was a major leap forward for the
insurance industry but came at a cost
Having invested the money it was essential to share
successes with internal and external stakeholders
Carlisle (2005) and the widespread floods of 2007
demonstrated model accuracy and, more importantly,
the financial benefit of embedding GIS
GIS saved at least £25m from just one event


Slide 5

Carlisle (2005) Flood Claims


Slide 6

2007 floods

Flood Claims
River
Non-River
Unknown

©Ordnance Survey

NU Outlines
1:75 years
1:250 Years


Slide 7

Lessons / Enhancements

River model was predictive – it worked!
BUT over 50% of claims in 2007 were from surface water rather than
from river flooding – a major wake up call to the insurance / hydrological
industries
Aviva signs long-term deal with JBA
New river
Surface water

Coastal flood models
(all with extensive use of Lidar)

Significant multivariate analysis to ensure hydrological output is
integrated into underwriting and pricing processes


Slide 8

LiDAR vs RaDaR - York DSM


Slide 9

Surface Water Model

•In the 2007 floods over
50% of claims were
caused by surface water
flooding
•The surface water flood
model was the first
national scale model of
it’s kind

•Pinpoints properties at
risk from 1 in 75, 1 in
200 and 1 in 1000 year
surface water events


Slide 10

Surface Water Flood Model

©Ordnance Survey


Slide 11

Coastal Flood Model

©Ordnance Survey


Slide 12

What Our Underwriters See
– Perils & Accumulation Summary

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Slide 13

What Our Underwriters See
– Perils & Accumulation Summary

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Slide 14

What Our Underwriters Can Now See
– The Visualisation of Aviva Data

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Slide 15

Athletics Club Risk, Surrey
Previous Assessment = Amber

Claim Cost £180k

With Hawkeye insight
The club house is amber, the sports
fields (source of income) are black

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Slide 16

Embedding GIS in day-to-day decisions



Hawkeye used to assess flood (and other) risks at individual commercial
property level



Exposure Management Strategy drives acceptance criteria



Survey required for all commercial properties in high flood risk areas



Terms apply where previous claims have occurred



Training material delivered and rolled out to all underwriters



A matrix is supplied within which underwriters apply terms consistently



Where there are multiple risks in close proximity guidelines have been
supplied ensuring consistent treatment



For household insurance - developed an automated system to provide a
premium (underwriting criteria) for all properties in the UK


Slide 17

Flood - Accumulation



Monitored at account level using Catchments and “Super Cells” that
could be impacted by an individual weather event.



Catchment
A single modelled river system in excess of 3Km in length including
the surrounding area where rainfall feeds in to the system and
includes tributaries of the main river.



Super Cell
Any number of “catchments” identified as involving known river
systems that can be considered to have a realistic probability of
being affected by the same flood event.



RMS model used to assess EML for all Catchments and Super Cells


Slide 18

Not just flood…
GIS used for
anything…
here it’s the
recent freeze
claims


Slide 19

What Hawkeye Delivers – Portfolio Assessment Tool

The tool will assess portfolios of
properties for the risks of flood,
subsidence, malicious damage /
arson, theft and accumulation of
exposure.

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Slide 20

How Hawkeye Delivers Enhanced Capability

 Address validation

Data Quality

 Accumulation management utilising cleansed address data

 Visualisation enables us to assess the entire property
Risk Assessment

 Maximises benefit of Aviva flood model
 Greater risk awareness allows for optimal pricing
 Informed underwriting decisions improves business mix

UW Processes
and Systems

Reduces number of systems used
Provides licensed access to online maps and imagery
Portfolio analysis tool
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