FEMA Chooses AIR Worldwide To Model NFIP Flood Risk

The Federal Emergency Management Agency (FEMA) will use AIR Worldwide's Inland Flood and Storm Surge Models for the United States to better understand the National Flood Insurance Program's (NFIP's) loss potential.

FEMA is leveraging a probabilistic modeling approach to assess the flood program's overall risk and potential payouts to property owners. The model will also be used to help the NFIP evaluate actuarially sound rates for its policies and to assess the impacts of major flooding events in real time.

"AIR is looking forward to assisting FEMA in its efforts to create safer, more resilient communities by reducing loss of life and property and lessen the financial impact of disasters on the nation," said Rob Newbold, executive vice president at AIR Worldwide. "Our models and software will help FEMA understand the NFIP's exposure to flood loss, which will not only help evaluate effective insurance and risk-transfer alternatives but also assess potential damage and losses as floods occur."

The AIR US Flood Model is a probabilistic tool available for assessing and managing inland flood risk at high resolution for locations on and off the many and varied river networks and floodplains across the United States. Insurance companies currently use AIR's inland flood model to offer flood insurance products in the private market.