South African insurance provider Old Mutual Insure has entered into a strategic partnership with UK-based flood science specialist JBA Risk Management to address flood risk in South Africa.

The collaboration will allow Old Mutual Insure to provide invaluable support in navigating the challenges posed by changing weather patterns. 

“Climate change poses a formidable challenge in pricing weather-related risks, particularly in the face of growing flood threats in South Africa. Our alliance with JBA allows us to leverage location-specific flood data and gives us a much more informed view of flood risk.

“This means that we will be able to offer an improved and more appropriate flood risk cover for clients and ensure our business model remains robust and climate-change ready,” says Old Mutual Insure chief actuary Ronald Richman.

The partnership will allow Old Mutual Insure to gain deeper underwriting insights into its flood exposure as JBA will provide the non-life insurer with detailed flood maps of the country, enabling it to better underwrite flood risks in both personal and commercial lines.

This will also assist in proactively managing policyholders’ risks to changing weather patterns and enable wider access to affordable reinsurance capacity. Old Mutual Insure will access JBA’s flood data using FLY Technology, which provides property-level flood risk data for any location. 

“We are delighted to be working with Old Mutual Insure in understanding and managing its flood risk in South Africa. Informed decision-making around flooding is critical in building future resilience for both the insurance market and its customers,” says JBA Risk Management re/insurance specialist Haydn Marchant.

The collaboration comes at a crucial time as the country grapples with the aftermath of severe storms, such as those experienced in the Western Cape in the latter half of 2023.

While these were not on the same scale of damage as the KwaZulu-Natal flooding in 2022, over one weekend the storm that occurred in September 2023 brought more rain to the region in three days than two typical mid-winter months. 

“In one of the wettest years in the Western Cape's recorded history, storms wreaked havoc and had devastating impacts on both people and businesses, underlining the pressing need for proactive measures against escalating flood risk.”

“By leveraging JBA Risk Management's expertise, Old Mutual Insure aims to provide its policyholders with superior flood risk coverage, thereby fostering a more resilient future for all stakeholders,” comments Richman.