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1. Why using a stochastic model

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Flood<br />

• Typical feature<br />

– Flood propagates along river streams and<br />

cannot affect large areas continuously, like<br />

wind or earthquake<br />

– Lower damage ratios, serious structural<br />

damage is not common<br />

– Low number of casualties<br />

– Typical - multi-country losses in Europe<br />

– Loss prevention can be very effective – flood<br />

defences, early warning<br />

Floodable zones in Poland<br />

Aon Benfield Analytics | Proprietary & Confidential<br />

20

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