The AIR Coastal Flood Model for Great Britain

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The AIR Coastal Flood Model for Great Britain The North Sea Flood of 1953 inundated more than 100,000 hectares in eastern England. More than 24,000 properties were damaged, and 307 people lost their lives. At the time, damage was estimated at GBP 50 million. Were a similar storm surge to occur today, losses would be in the billions. With 10% to 15% of coastline less than 5 metres above sea level, the UK is one of the countries in Europe most vulnerable to coastal flooding.

Although coastal defences and warning Companies with a stake in the UK property insurance market need a fully probabilistic approach to assessing coastal flood systems have been systematically risk that provides the likelihood of losses of any given size. improved since 1953, the population and This approach captures the many complexities inherent in exposure at risk have multiplied and the flood peril, the property damage that can result, and the the level of protection is not uniform. Although the North Sea Flood remains the most damaging storm surge on ultimate insured loss. By using advanced numerical weather prediction and hydrodynamic modelling technology, the AIR Coastal Flood Model for Great Britain, which includes extreme events that exceed the scope of historical experience, allows companies to assess and manage their risk from coastal record, companies should not consider it flooding. an exceedingly rare level of loss. In fact, A COMPREHENSIVE VIEW OF COASTAL FLOODING RISK more damaging scenarios are possible. The most damaging coastal floods are caused by the Furthermore, with areas of the east coast tides. In the North Sea, surges pushed ahead of southward coincidence of large wind-driven surges and regional high slowly subsiding, the likelihood of another moving extratropical cyclones enter the progressively major coastal flood is growing. shallower and narrower approaches to the Strait of Dover. As a result, the east and south coasts of the UK experience the highest frequency of coastal flooding in the country. As UK insurers and the government continue to work together to ensure that The AIR model uses advanced numerical weather prediction (NWP) and hydrodynamics to consider multiple combinations flood insurance remains affordable and of storms, tide levels, and sea defence effectiveness to develop available to homeowners at high flood are produced by different mechanisms and may combine in a realistic catalogue of flood events. Because storms and tides risk, the insurance industry must assess a random fashion, the model includes thousands of possible the risk, manage exposure accumulations, interactions at different points along the coast. and plan reinsurance for a highly complex peril. Population Density Loss Cost Wind Speed Coastal flood risk (loss costs) in southeastern England; population density of UK (inset) 2 Representative pattern of a coastal flood-producing storm in the North Sea

NWP, which uses mathematical models of the atmosphere and oceans to predict regional weather patterns, enables the AIR model to more accurately represent the complex timedependent, three-dimensional structure of damaging storms. State-of-the-art hydrodynamic modelling is used to simulate coastal water flow, enabling robust estimates of the volume of water displaced and its impact upon coastal areas. FLOOD VOLUME MODEL DETERMINES DEPTH AND EXTENT OF COASTAL FLOODING The height and volume of the storm surge, the state of the tide, and the performance of any sea defences determine the amount of water that comes ashore. The topography and elevation of the coastal landscape prescribe where that water will go and the depth of the flooding that will be experienced. To determine flood patterns the model estimates flood volumes and then redistributes them over high resolution local topography. The most common types of coastal flooding water passing through and around property but not remaining at great depth, water standing for a long period, and the high velocity inundation that can destroy buildings very close to the coastline are all modelled. ACCOUNTS FOR SECONDARY RISK MODIFIERS AND TIME ELEMENT DAMAGE The model reflects the best available information regarding flood damageability and includes the latest research from engineering analyses and findings from published damage surveys and those conducted by AIR. The amount of damage that a building will suffer depends principally on the depth and duration of inundation and on the building construction and occupancy type. Secondary risk modifiers, such as floor of interest and basements, are explicitly modelled. 0.09 0.08 0.07 0.06 0.05 0.04 0.03 0.02 0.01 0 0.2 0.7 1.2 1.7 2.2 2.7 3.2 3.7 To estimate damage to buildings and contents caused by coastal flood, the AIR model incorporates damage functions that vary by occupancy, construction, and height. For commercial properties, the model s damage functions use a component-based approach to capture the relative vulnerability of different building components, including building, fixtures and fittings, and services, as well as their contribution to total replacement value. Wood Masonry Concrete Steel Unknown Sample building and building component damage functions for a high street shop The AIR Coastal Flood Model for Great Britain was developed in close partnership with Delft Hydraulics. Left: the model domain and (inset) the Wash and its flood zones 3

SEA DEFENCES AND THEIR POSSIBLE FAILURE The level of flooding that results from any given storm depends on the behaviour of coastal flood defence systems. Based on storm severity and duration, the model accounts for sea defences being overtopped or failing under extreme pressure. Extreme loss scenario after failure of Thames Barrier Example of flood distribution patterns in the flood zone of the Wash, with failed sea defences (left panel) and effective sea defences (right panel) Some major engineered structures, such as the Thames Barrier, provide a significantly higher degree of protection than a typical seawall or earth embankment. But an extreme scenario in which the Thames Barrier fails could cause significant flooding in London and beyond, all the way to Teddington Lock. Such a scenario could result in insured losses of more than GBP 4.5 billion. 4 Time element damage functions account for alternative accommodation and related expenses and business interruption losses. The model accounts for the time required for drying and cleaning the property, which can account for a significant share of the time to re-occupy a building. A COMPREHENSIVE APPROACH TO MODEL VALIDATION Validation is an essential step in the model development process. To ensure the most reliable modelled loss estimates available, each component of the model has been carefully validated against multiple sources and data obtained on three historical storms: December 11 21, 1982; January 26-February 7, 1983; and February 8 20, 1989. Modelled tidal amplitudes compared to observed data from near-shore stations for three storms Modelled Tidal Amplitude (m) Empirically computed floodwater volumes, for example, were compared with modelled flood volumes computed on a high resolution (100-400 metre) grid. These comparisons were made for all coastal regions and performed for several different model runs. The model s damage functions incorporate findings from published engineering research and leverage the extensively validated damage functions from the AIR Inland Flood Model for Great Britain. 4 3 2 1 0-1 -2-3 -3-2 -1 0 1 2 3 4 Observed Tidal Amplitude (m)

MODEL AT A GLANCE MODELLED PERIL MODEL DOMAIN SUPPORTED GEOGRAPHIC RESOLUTION SUPPORTED LINES OF BUSINESS SUPPORTED CONSTRUCTION AND OCCUPANCY CLASSES Coastal flooding caused by storm surge Eastern and southeastern coasts of England Up to 100-metre Residential, commercial, industrial, agricultural, and municipal 33 construction classes, including caravans (mobile homes); 50 occupancy classes Unknown damage function: When detailed exposure data (e.g., construction type or height) are unavailable, the model applies an unknown damage function that takes into account countryspecific construction characteristics using exposure-weighted averages. MODEL HIGHLIGHTS Combines advanced numerical weather prediction and hydrodynamic modelling technology to create a comprehensive model of surge and tidal dynamics along the UK east and south coasts Provides a comprehensive catalogue of storm surge flooding events, which enables a reliable means of determining the full range of potential flood losses Uses realistic flood patterns based on elevation data and detailed hydrodynamic simulations to compute peak flood depths Fully accounts for the system of sea defences and thousands of possible surge-tide interactions at different points along the coast; defence failure is probabilistically modelled in loss estimation Incorporates damage functions for residential, commercial, and industrial assets as well as agricultural buildings and greenhouses (building and non-plant contents) Features damage functions created using a component-based approach to capturing the relative vulnerability of individual building components for commercial properties 5

ABOUT AIR WORLDWIDE AIR Worldwide (AIR) is the scientific leader and most respected provider of risk modeling software and consulting services. AIR founded the catastrophe modeling industry in 1987 and today models the risk from natural catastrophes and terrorism in more than 90 countries. More than 400 insurance, reinsurance, financial, corporate, and government clients rely on AIR software and services for catastrophe risk management, insurance-linked securities, detailed site-specific wind and seismic engineering analyses, and agricultural risk management. AIR is a member of the Verisk Insurance Solutions group at Verisk Analytics (Nasdaq:VRSK) and is headquartered in Boston with additional offices in North America, Europe, and Asia. For more information, please visit www.air-worldwide.com. Cover photo: Thames Barrier, Peter Trimming AIR Worldwide is a member of the Verisk Insurance Solutions group at Verisk Analytics. AIR Worldwide is a registered trademark of AIR Worldwide Corporation. 2013 AIR WORLDWIDE 6