Lack of flood data could lead to losses: S&P

UK retail insurers could face bigger than expected flood losses because of inadequate data about their exposure, warned rating agency Standard & Poor’s (S&P).

In a report published by Insurance Times, S&P stated that flood risk presents the UK retail industry with a bigger challenge than other types of natural catastrophic risks.

The key element in flood risk management is the ability to adequately quantify flood risk exposure, particularly to extreme events, S&P said. However, the industry’s assessment of its exposure to extreme floods, is less robust than it is for major natural catastrophe, such as, storm and earthquake.