Pricing and Diversification of Flood Risk in Canada

Flood is the single most important natural hazard in Canada. Since 2015, private (overland) flood insurance coverage is gradually being offered to Canadian homeowners and demand for such protection is on the rise in Canada and elsewhere. For the product to be viable to the insurers and to the customers in the long term, flood insurance needs to be adequately priced and managed with a large and well diversified portfolio. Using a combination of climate and statistical models, the aim of this research project is to analyze pricing and especially spatial diversification of flood risk in Canada. The project will help insurance companies manage flood insurance in the short-term and determine whether such insurance will be viable in the long term as a result of climate change.

Faculty Supervisor:

Mathieu Boudreault

Student:

Partner:

Co-operators (General Insurance);Canadian Institute of Actuaries

Discipline:

Mathematics

Sector:

Other services (except public administration)

University:

Université du Québec à Montréal

Program: