Ping An Collaborates with JBA Risk Management to Boost Flood Risk Analysis
Ping An Insurance (Group) Company of China has forged a strategic partnership with the UK-based JBA Risk Management, aiming to bolster its underwriting and risk management prowess. This collaboration involves the integration of JBA’s high-resolution flood maps into Ping An’s Digital Risk System (Ping An DRS), a component of its property and casualty (P&C) operations.
The inclusion of JBA’s maps is set to enhance Ping An’s flood risk assessment, facilitate risk-based pricing, and support comprehensive accumulation risk analysis. This marks JBA’s inaugural partnership of this nature in China, following recent enhancements to its China Flood Maps, with special attention to regions like Hong Kong, the Pearl River Delta, and the National Capital Region. These updates consider intricate assessments of infrastructural developments in Eastern China.
After a thorough evaluation, Ping An discovered a 60% to 70% correlation between historical flood events and JBA’s predictive models, leading to their decision to adopt JBA’s flood data.
Dr. Xiao Jing, the chief scientist at Ping An Group, highlighted the critical role of data-driven innovation in risk management. “With floods becoming more frequent and severe in China, this partnership enhances our data-driven decision-making capabilities, ensuring robust risk-based pricing and effective accumulation risk management,” said Dr. Xiao. “We are eager to utilize this advanced technology to protect our customers better and contribute to a more resilient future.”
Simon Waller, executive chair of JBA Risk Management, expressed enthusiasm for the collaboration. “We are thrilled that Ping An, a globally acclaimed, technology-driven financial powerhouse, has selected our robust, science-led flood data for its risk-based pricing, accumulation, and reinsurance processes,” Waller remarked.
This agreement coincides with severe flooding in China, notably in Hunan province, where the remnants of Typhoon Gaemi have wrought destruction. Heavy rains and mudslides have resulted in at least 22 fatalities, with thousands evacuated from cities like Zixing and Hengyang. The deluge has damaged over 1,000 homes, and major roads have collapsed. Some areas experienced up to 645mm (25 inches) of rain in just 24 hours, overwhelming infrastructure, breaching dams, and causing widespread agricultural damage.