Under the licensing agreement, London-based Brit Insurance will employ First American's Advanced Flood Risk Solutions, a suite of products designed to meet the underwriting, portfolio management, risk transfer and hazard monitoring needs of the insurance industry. Of the products in the suite, Brit Insurance will utilize First American's Flood Risk Score, which combines comprehensive flood hazard data, such as levee and dam inventory and conditions, historical flooding patterns and advanced hydrological science, to provide an exceptionally accurate underwriting compliance and management tool. Brit Insurance will also utilize First American's U.S. Flood Catastrophe Model to enable comprehensive analysis of both riverine and coastal flood risk exposure at the portfolio and policy level for locations throughout the continental United States.
"Over the last decade, the United States has experienced a significant increase in flood exposure and losses. Consequently, the insurance industry has communicated the need for an innovative solution to profitably manage flood risk," stated Kevin Madden, vice president of business development for First American Spatial Solutions. "Brit Insurance's forward-looking decision to manage flood risk actively through the use of our underwriting and portfolio management tools provides them with the ability not only to manage their existing portfolio but also to take advantage of opportunities to write additional business that is favorably priced and fits their risk profile."
"Combined, First American's Flood Risk Score and Flood Model represent an exceptional solution to comprehensive flood risk management. These tools provide a distinct competitive advantage through improved risk selection, pricing and the unparalleled ability to measure financial exposure to the flood peril," said Matthew Wilson, chief executive officer of Brit Insurance's Global Markets strategic business unit, a division that has grown into a multi-disciplined, diverse operation with a mix of catastrophe and non-catastrophe business in both general and niche classes.