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    Confidential2014 Risk Management Solutions, Inc.

    U.S. FLOOD MODELIN

    Clare SalustroManager, Model Product Management, Americas Climate

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    Wherehave webeen?

    Where arewe now?

    Whatschanged?

    Whatscoming?

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    US FLOODTIMELINE

    AUGUST2005

    Hurricane Katrina$16.3 Bn NFIP loss

    SEPTEMBER2008

    Hurricane Ike$2.7 Bn NFIP loss

    OCTOBER

    Hurrica$7.8 Bn N

    JUNE2012

    Biggert-Waters NFIP Reform Act signed into law

    JULY2013

    MTA Cat Bond is first ever CatBondfor storm surge

    JAN

    PartialBigger

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    Event Year

    Hurricane Katrina 2005

    Hurricane Sandy 2012

    Hurricane Ike 2008

    Hurricane Ivan 2004

    Hurricane Irene 2011

    Tropical Storm Alison 2001

    Louisiana Flood 1995

    Tropical Storm Isaac 2012

    Hurricane Isabel 2003

    Hurricane Rita 2005

    Hurricane Floyd 1999

    Tropical Storm Lee 2011

    Hurricane Opal 1995

    Hurricane Hugo 1989

    Hurricane Wilma 2005

    NFIP: TOP 15LOSSESFlood risk in U.S. isdominated by coastal flood

    Event Year

    Hurricane Katrina 2005

    Hurricane Sandy 2012

    Hurricane Ike 2008

    Hurricane Ivan 2004

    Hurricane Irene 2011

    Tropical Storm Alison 2001

    Louisiana Flood 1995

    Tropical Storm Isaac 2012

    Hurricane Isabel 2003

    Hurricane Rita 2005

    Hurricane Floyd 1999

    Tropical Storm Lee 2011

    Hurricane Opal 1995

    Hurricane Hugo 1989

    Hurricane Wilma 2005

    Event Year

    Hurricane Katrina 2005

    Hurricane Sandy 2012

    Hurricane Ike 2008

    Hurricane Ivan 2004

    Hurricane Irene 2011

    Tropical Storm Alison 2001

    Louisiana Flood 1995

    Tropical Storm Isaac 2012

    Hurricane Isabel 2003

    Hurricane Rita 2005

    Hurricane Floyd 1999

    Tropical Storm Lee 2011

    Hurricane Opal 1995

    Hurricane Hugo 1989

    Hurricane Wilma 2005

    14 of top 15 NFIPclaims related toTropical Stormsand Hurricanes

    Over half of total

    NFIP payout(since programbegan in 1978)from just two

    years 2005 and2012 driven bycoastal flood loss

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    NFIP: LOSSHISTORYFlood risk in U.S. isdominated by coastal flood

    SourceTotal NFIP Claims

    in $Bn(1978-present)

    Co

    Flooding from hurricanes and tropical storms 36.5

    Non-tropical cyclone-related flooding 5.7

    TOTAL 42.2

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    COASTALFLOODMODELING

    ISNT EASY

    Storm surge processes arecomplex

    Must account for hurricanecharacteristics over lifetime of

    storm

    Must model at very high resolution

    RMS approach has evolved overtime and was well validated byrecent events such as Sandy

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    Cannot assume 1:1relationship between wind andsurge severity at landfall

    Storm surge impacts can bemore severe than indicated bylandfall characteristics

    Sandy (2012) Ike (2008) Katrina (2005)

    ITS NOT JUST LANDFALL CHARACTERISTICS THAT M

    Windspeed

    (mph) at landfall

    Surge height(feet)

    22

    2

    20

    12

    18

    16

    14

    10

    8

    6

    4Cat 1

    Cat 2

    Cat 3

    Cat 4

    Cat 5170

    160

    120

    150

    140

    130

    110

    100

    90

    80

    Cat 1

    Cat 2

    Cat 3

    Cat 4

    Cat 5

    K

    I

    S

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    Empirical Models

    Lack of observations to trainon across all regions

    Doesnt account for surgedevelopment over life ofstorm

    Difficult to deal with complexcoast-lines, bays, andbarrier islands

    DIFFERENT APPROACHES TO STORM SURGE MODEL

    SLOSH

    (Sea, Lake, and OverlandSurge from Hurricane)

    Operationalfocus, widelyused for disaster planning

    Not certified for FEMA floodmodeling studies

    Grid resolution decreasesaway from central point

    Hydrodynamic M

    Physics-based catime-stepping stor

    Considered best pFEMA flood modestudies

    Can control grid reput fine resolutionwhere theyre nee

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    Empirical Models

    Lack of observations to trainon across all regions

    Doesnt account for surgedevelopment over life ofstorm

    Difficult to deal with complexcoast-lines, bays, andbarrier islands

    DIFFERENT APPROACHES TO STORM SURGE MODEL

    SLOSH

    (Sea, Lake, and OverlandSurge from Hurricane)

    Operationalfocus, widelyused for disaster planning

    Not certified for FEMA floodmodeling studies

    Grid resolution decreasesaway from central point

    Hydrodynamic M

    Physics-based catime-stepping stor

    Considered best pFEMA flood modestudies

    Can control grid reput fine resolutionwhere theyre nee

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    NUMERICALAPPROACH:SUPERCOMPUTINGRESOURCESREQUIRED!

    ReCPter

    of dgeNoHusto

    sto

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    RMS SURGEMODELING:NESTED MESH

    FRAMEWORK

    TRACK SET WIND FI

    REGIONAL MESH LOCAL MESH FLOOD DE

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    Resolutions as fine as100m

    Ability to model complexflows of water in and out ofbaysand harbors

    Manage and underwritecoastal flood risk withconfidence, down to thelocal level

    HIGH RESOLUTION COASTAL FLOOD MODELING

    Detailed bathymetry and coastal topography: So

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    ABLE TO MODEL REALISTIC COASTAL FLOODING

    Previous model extent (parametric model) Current model extent (full hyd

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    ABLE TO MODEL REALISTIC COASTAL FLOODING

    Previous model extent (parametric model) Current model extent (full hyd

    FEMA Flood ERMS St S M d l

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    WELLVALIDATEDDURINGSANDY

    RMS model asgood as best datadeveloped byFEMA

    Verified againstover 200

    independent floodobservations

    FEMA Flood ERMS Storm Surge Model

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    LESSONSLEARNEDFROM SANDY

    High-value contents inbasements within centralbusiness district tookmany by surprise

    Highlighted gaps in datacapture, limited

    exposure information

    Sandy Data Callcurrently underway

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    !"#$ &'()#*"+,'&-."$ /0./

    *"/)+1./)2 . 34##

    ($".&*, 2/'1& 241+)&'()# *"/' */2

    0411*,.") &'()# 24*/)

    5*+0 64.#*/$7 8)##9:)1*;)( &'()# 3'1

    (1*:)1 '3 = ?''( #'22

    @*.A'3 1*

    ,'.2

    WHERE DOESTHIS LEAVEUS NOW?

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    COASTAL FLOOD VIEW ALREADY AVAILABLE100-YEAR FLOOD ELEVATION: FEMA VERSUS RMS

    FEMA

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    Completingthe U.S.

    Flood

    Solution

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    GOAL:Develop modeling solution covering allsources of flooding in US

    ! Tropical Cyclone Surge! Tropical Cyclone Precipitation! Non-Tropical Cyclone Precipitation

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    GOAL:Develop modeling solution covering allsources of flooding in US

    " Tropical Cyclone Surge! Tropical Cyclone Precipitation! Non-Tropical Cyclone Precipitation

    Suite of US Flood products

    " Storm Surge within Hur

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    GOAL:Develop modeling solution covering allsources of flooding in US

    " Tropical Cyclone Surge! Tropical Cyclone Precipitation! Non-Tropical Cyclone Precipitation

    Suite of US Flood products

    " Storm Surge within Hur! US Flood HD Model !

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    GOAL:Develop modeling solution covering allsources of flooding in US

    " Tropical Cyclone Surge! Tropical Cyclone Precipitation! Non-Tropical Cyclone Precipitation

    Suite of US Flood products

    " Storm Surge within Hur! US Flood Hazard Data ! US Flood HD Model

    New US Inland Flood model (lower 48

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    New US Inland Flood model (lower 48states) set to be released on RMS(one)

    Probabilistic model is precipitation-driven

    Includes tropical cyclone andnon-tropical cyclone precipitation

    Covers both floodplain (major andminor) and off-floodplain (i.e. flashflooding) events

    Continuous simulation accounts forantecedent conditions

    U

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    BY THENUMBERS

    U.S

    Entirecontiguous

    US modeled:8 million

    square km2

    620,000km ofmajorrivers

    160,000+ kmof defenses

    12,000river

    gauges

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    Number of grid cells in

    US Storm SurgeModel

    Number of grid cells in

    US Inland Flood Model

    32 Mn 5.7 Bn

    LARGEST MODEL EVER BUILT

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    WHY NOW?

    Not computationally possiblepreviously

    Were able to do it nowbecause:

    Migrated heavyprocessing fromconventional CPUs toGPUs gain of over 200x

    RMS(one) reducesstorage need for client

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    HD Simulation: Allows for continuoevents

    Similar meteorological eventsvery different hazard & loss evo Antecedent conditions

    influence the severity of

    Able to capture clustering and New financial model enabled by Co

    Definition Language (CDL)

    Properly model hours clause aflood policy terms

    Performance offered by the Cloud

    BUILDINGMODELS INRMS(ONE)

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    GeospatialData

    StochasticEvent Module

    HazardModule

    VulnerabilityModule

    Underlyingelevationdataset andderivativeelements

    Defineprecipitation

    years

    Computeresultingflood

    hazardfootprints

    Calculate

    damagebased onrisk item

    character-istics

    US FLOOD MODEL COMPONENTS

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    High-Quality, High-Resolution Datais critical to flood modeling

    Source resolution for elevatioimproves quickly

    Using latest enhanced versioHydrography Dataset (NHD):

    RMS spent several person-yedata layers

    Fed findings back to NHproviders to help improvproduct

    HIGH QUALITY INPUT DATA

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    EXAMPLE QA TASK

    Actual pathActual path

    By comparing with Google Earth, corrected misplaced river segment in elevation

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    PrecipitationRainfallRunoff

    Routing Defense

    Simulate the

    source of theflooding:tropical

    cyclone andnon-tropical

    cyclone

    Understandhow rainfallenters the

    watersystems

    Propagate thewater through

    major andminor river

    systems

    Acco unt formitigation

    measures andpossibil i ty offlood defense

    failures

    HAZARD SIMULATION APPROACH

    Tropical Cyclone Precipitation Non-Tropical Cyclon

    Sourc

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    PrecipitationRainfallRunoff

    Routing Defense

    Simulate the

    source of theflooding:tropical

    cyclone andnon-tropical

    cyclone

    Understandhow rainfallenters the

    watersystems

    Propagate thewater throughmajor andminor river

    systems

    Acco unt formitigation

    measures andpossibil i ty offlood defense

    failures

    HAZARD SIMULATION APPROACH

    Comparison of 100 year model hazard with FEMA maps Memphis TN

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    FEMA RMS

    Comparison of 100 year model hazard with FEMA maps - Memphis, TN

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    Coverage: 48 states & District of Columbia All sources of flooding:

    o Coastal flooding from storm surgeo Tropical cyclone precipitationo Non-tropical cyclone precipitation

    Return periods:o Multiple return periods, 20 years to 1000 yeo Catchments by hydrological regions

    RMS(one) functionality:o Location-level underwriting, flood zone look

    and severity with return period and flood de

    o Accumulation managemento Flood hazard visualization

    RMS FLOODHAZARD DATAPRODUCT

    Comingsoon!

    Example 200-year return period hazard ma

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    RMS FLOODHAZARD DATAPRODUCT

    Fully integrated intoRMS(one)

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    RMS VS. FEMA: COMPARABLE BUT DIFFERENT

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    RMS VS. FEMA: COMPARABLE BUT DIFFERENT

    Return

    Period(years)

    FEMA FIRMsRMS Hazard Data

    Product

    FloodExtent

    FloodElevation

    FloodExtent

    FloodElevation

    20 ! !

    50 ! !

    100 ! !(BFEs) ! !

    250 ! !

    500 ! ! !

    1000 ! !

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    RMS VS. FEMA: COMPARABLE BUT DIFFERENT

    Component FEMA FIRMsRMS Haza

    Prod

    Mapping methodology Varies by regionConsistent for 48 states

    Geospatial data vintage(e.g., elevation)

    Varies by region Current

    Update frequencyVaries by region,sometimes > 20 years

    Can incorporaquickly

    Correlation with otherperils

    n/aUses same evRMS North AtlHurricane mod

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    Wherehave webeen?

    Where arewe now?

    Whats

    changed?

    Whatscoming?

    RMS tools alrea

    !and mo

    NFIP reform will happen,eventually

    Can the private market take onmore of the US flood risk?


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