How Advanced Tools Are Transforming Flood Risk Analysis and Insurance Pricing

In a recent Executive Exchange with Triple-I CEO Sean Kevelighan, Jonas Torland, co-founder of Norway-based 7Analytics, explained how his company’s advanced flood risk tools, initially developed for the oil and gas industry, are helping U.S. insurers assess flood risks with greater accuracy. By leveraging hydrology, geology, and data science, 7Analytics provides granular, high-precision flood risk data, enabling insurers to better pinpoint insurable areas that might otherwise be deemed too risky.

The company aims to reduce the flood protection gap by giving private insurers the confidence to offer coverage in flood-prone areas, particularly as the cost of the National Flood Insurance Program (NFIP) increases for some policyholders. With NFIP’s Risk Rating 2.0 aligning premiums with individual property risks, tools like those from 7Analytics offer a solution for more accurate pricing and increased private sector participation in flood insurance.

Kevelighan emphasized the importance of adopting innovative technologies to modernize how flood risk is assessed and addressed by insurers.