Flood Insurance Exchange with CoreLogic® Flood Risk Score

This post is part of a series sponsored by CoreLogic.

Rising floods are a major threat to communities and economies around the world, making flood insurance an important part of disaster management. However, accurately assessing the flood risk of buildings has been a complex and often expensive task. Traditional methods such as certificates of elevation have limitations in terms of cost, accuracy, and efficiency. The development of CoreLogic's Flood Risk Score provides insurers with a comprehensive array of data elements, including First Floor Height, Lowest Adjacent Grade (LAG), Structure Intersect and more granular Water Surface Elevation (WSE), all contributing to a more accurate risk assessment.

The Challenge of Flood Insurance

Floods are among the most destructive natural disasters, causing billions of dollars in damage each year. With climate change increasing flood risks, insurers face increasing challenges in providing comprehensive flood insurance. One of the main challenges is to accurately assess the flood risk of individual buildings, especially in high risk areas.

Key Benefits of CoreLogic's Flood Risk Assessment:

The development of CoreLogic's First Floor Height Risk Score uses AI-driven technology to process images of buildings and extract valuable building height data.

Complete Data: Flood Risk Score development goes beyond First Floor Height and includes LAG, Structure Intersect, and more granular WSE. The closest distance (LAG) is defined as the total height above sea level at the lowest point of the ground level closest to the building, which means that the most vulnerable areas around the building can now be detected/determined. This feature is combined with a more granular water elevation model (WSE) at a resolution of one meter (previously 10 meters) and cross-sectional structure, also providing a unique and accurate view of the risk at the building level. These new features offer a range of benefits, including providing a complete view of a building or parcel where two buildings or parts of the building are vulnerable and were previously only viewed and scored based on the centroid of the parcel. In this way, the development of flood risk scores provides insurers with a comprehensive, differentiated view of flood risk.

Default: The development of the Flood Risk Score reduces the need for time-consuming and expensive elevation certificates. It provides insurers with automated, address-level decisions, reducing manual work and speeding decision-making.

Precision Risk Assessment: Insurers can now break down flood risk down to a granular level, allowing for more accurate risk assessment. This is important, especially in high risk areas and dealing with flood situations. Additionally, our data extends beyond floodplains, providing valuable information on properties that may be outside floodplains but are at high risk. This comprehensive approach helps to accurately assess risk and avoid high risk areas, even if they are not classified as high risk on the flood map.

Efficiency: Development of Flood Risk Results can be delivered in a variety of ways, including the CoreLogic RiskMeter Online® platform, Spatial API, or batch files, depending on the needs and capabilities of the insurer. This flexibility improves efficiency and saves valuable man-hours.

Accuracy, Performance, and Reliability

Insurers have long faced a few pain points when it comes to flood insurance. These include the need for high risk assessment, efficient data collection to avoid delays, and the need for accurate building height data. Flood Risk Results Development effectively addresses these pain points, empowering insurers to assess risk with confidence.

The development of the CoreLogic Risk Score represents a major development in the field of flood insurance. Using the power of artificial intelligence and accurate property data, insurers can now assess flood risk with unprecedented accuracy and efficiency. This benefits not only insurance companies, but also property owners who want access to more reliable flood insurance. As flood risks continue to emerge in a changing climate, solutions like these are critical tools to stay ahead of the curve and provide the protection communities need. These improvements are particularly timely as we continue to see increased flooding across the country due to climate change.

To learn more about effective underwriting for insurance brokers visit CoreLogic Underwriting Flood Solutions.

©2024 CoreLogic, Inc. All rights reserved. Although all content and information is believed to be accurate, CoreLogic makes no guarantee, representation, or warranty, express or implied, including but not limited to the completeness, accuracy, performance, or suitability, regarding the content or information or products referred to herein or any aspects thereof. based on AI or content products and assumes no responsibility or liability for any content or information or products mentioned herein or any features based on AI or content products or any reliance thereon. . CoreLogic® and RiskMeter™ are trademarks of CoreLogic, Inc. or its subsidiaries or affiliates.

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