A visiting specialist in natural hazards says the Australian insurance industry needs nationwide flood data collection similar to the system used by the US Federal Emergency Management Agency (FEMA).

MapInfo Global Insurance Services director Craig Bedell visited Australia last week to meet some of the country’s top insurers and discuss data solutions for natural hazards.

New York-based Mr Bedell told Sunrise Exchange News more comprehensive flood data is required so the insurance industry can properly price risk and stay competitive.

“Disparate areas for flood data in Australia should be aggregated, but there needs to be a unified system,” he said. “The system could be much like FEMA’s.”

FEMA provides floodplain mapping and mitigation programs as well as advice on preparedness for natural hazards.

Mr Bedell says one of the main inhibitors to a better system for flood data collection is local government. “Insurers need to assign the proper price to risks, but it’s difficult if there isn’t information available from local government.”

The lack of information poses many problems for the industry. One of them is whether the risk of flood damage is too great in some areas.

“No one has enough data to comfortably make exclusions, but insurers are taking it into consideration in their underwriting,” he said.

Other natural hazards that are big concerns in Australia are hail and storm surge, and bushfires on the fringes of metropolitan areas.

“Every carrier I’ve met with in the past two weeks has said they are endeavouring to get more accurate hail data information,” he said. “As in other countries, [bushfires] – as metropolitan areas develop further – are an increasing concern.”

MapInfo offers insurers a way of using location information, predictive analytics and modelling to increase business profitability and performance by making better decisions on underwriting, claims management, sales and marketing.