| Project Reference: | PRP/052/24LI |
| Project Title: | A Hong Kong Flood Catastrophe Model for the Insurance Industry |
| Hosting Institution: | The Hong Kong University of Science and Technology (HKUST) |
| Abstract: | Extreme rainfall is becoming increasingly intensive and frequent; both the government and the insurance industry urgently require a flood catastrophe model tailor-made for Hong Kong to manage flooding risks under climate change. Over the years, our research team has developed advanced algorithms for stochastic rainfall generation, flood simulation and risk assessment. In this project, we aim to extend the capabilities of our inhouse technology to develop the first tailor-made flood catastrophe model for Hong Kong. The 3-km-spaced rain gauge data available for Hong Kong will be leveraged to characterize the spatiotemporal variability of rainfall and to generate stochastic rainfall events considering climate change. A chain of AI-based will be developed to enable fast generation of a 5-m-resolution flood event dataset. Vulnerability models tailored for Hong Kong will be developed based on Taiping Reinsurance’s flood loss data. A flood risk assessment system will be developed to estimate potential ground-up and insurance losses. The proposed technological advancements will be integrated into marketable flood catastrophe software. The outcome will help insurance companies develop new business with flood risk-informed value-added services. It will also empower Hong Kong’s international risk management function and echo the Chief Executive’s 2023 Policy Address on improving risk assessment capabilities. |
| Project Coordinator: | Prof. Limin Zhang |
| Approved Funding Amount: | HK$ 2.32M |
| Project Period: | 30 Sep 2024 - 31 Mar 2027 |
