Posted on 28 Jun 2010
Torrential rains triggered severe flash flooding in southeastern France last week, causing deaths, widespread property damage, electric and transportation disruption, and massive evacuations.
Water levels reached over eight feet in some parts, but electricity was restored to all households affected by the floods by the evening of June 19, according to news reports.
"A natural hazard can have a profound effect on a business, but such risks can be managed through a combination of risk mitigation and risk transfer," noted Francesco Nazzini, Modelling, Analysis and Design, Marsh Risk Consulting Practice.
Flood risk modeling has a key part to play in ensuring adequate risk financing.
"Flooding is one of the most difficult natural perils to model (compared to earthquake or hurricane, for example), as the level of damage to property will depend greatly on the exact location of the site in relation to the river plain," Nazzini added.
Catastrophe modeling data can also be used in the immediate aftermath of an event to determine an estimate of the likely property and business interruption damage industry losses arising from the event.