IAA Resource and Environment Working Group releases a Discussion Paper on Flood Risk.
The International Actuarial Association (IAA) is pleased to announce the release of the discussion paper “Flood Risk”, developed by its Resource and Environment Working Group (REWG).
This paper provides a description of flood risk and how it can be managed. It is intended to provide a fundamental background and encourage discussion on this important topic for use by actuaries, regulators, and public policy planners around the world. Aspects covered include: the entire flood risk management process, methods that can be used to assess, mitigate, and finance the risks involved, the role of insurance and governments, public policy implications, and the role of actuaries. Floods are a major threat to life, health and property across the world, making the methods of mitigating and financing them vitally important. A wide variety of approaches to manage this risk have been taken by both the private and public sectors, the best combination of which has to be determined by each country. It is the desire of the REWG that the principles considered in this paper can be effectively utilized by each country.
Gábor Hanák, IAA President, said “the cost of floods around the world, in terms of property damage and human health and life, is enormous. Floods can have a significant financial and economic impact on society and the individuals and businesses affected. We hope that this discussion paper will provide actuaries with a practical resource in providing services to the many stakeholders affected by the key issues raised in this paper.”
Sam Gutterman, leader of the REWG subgroup said “Floods have always been with us. But we now have tools and increasingly enhanced information to better manage their associated financial risks. The REWG hopes this paper will enable actuaries to effectively apply these tools and information so that private and public entities, as well as applicable regulators and policymakers, will be able to craft better approaches and solutions to this risk.”
The paper is available on the IAA website under Publications/Papers.