1 HORA - The basis of insurability of natural risks in Austria Dr. Anita SCHÖNEGGER Manager Property Austrian Insurance Association

2 STRUCTURE OF PRESENTATION 1.reasons for starting the project 2.beginning 3.project facts 4.further steps 5.benefits

REASONS FOR STARTING THE PROJECT a worldwide significant increase of natural hazards Austria was affected seriously by floods and hailstorms in the last years heavy floods affected many Austrian regions in summer 2002  total damage about € 3 bn  insured losses about € 400 m 3

topography AUSTRIA Flood 2002 Flood 2005

AUSTRIA – FLOOD

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REASONS FOR STARTING THE PROJECT 8  the sums insured were and are still very low  the payments of the public catastrophe fund were by far not sufficient  less information means less prevention  the public discussion encouraged the insurance industry to search for better solutions

BEGINNING 9  2002: establishment of the working group „Natural Catastrophes“  model „ZÜRS“  dialogue partner: Federal Ministry of Agriculture and Forestry, Environment and Water Management (Ministry of Life)

10 PPP HORA Austrian Insurance Association BML (Federal Ministry of Life) System partners – reinsurances and brokers BEGINNING

PROJECT FACTS 11 numerous data and files were linked

DGM and digital river network, for which inundation surfaces were to be computed hydrologic data - supply by discharges of floodwater given of annualness in small distances along this river network 1. step: determination of discharges of different annualness at the levels 2. step: transmission of these punctual values on the entire river net, so-called regionalization HORA

Zone 1 Zone 2 computation of the inundation surfaces for different annualnesses, for example HQ30 HQ100 HQ200 (opt. HQ50 und HQ500) 1. production of the transverse profiles from the DGM in firm distances 2. hydraulics water level situation of computation as a function of valley profile, longitudinal slope and roughness factor 3. determination of the inundation surface by transferring into the DGM HORA

 digital risk maps for floodrisks  internet version (since June 2006)  intranet version  accumulation risks (HORA II) internet version (since June 2006)  model calculations for most water discharge scenarios 14 PROJECT FACTS

15 PROJECT FACTS

further representations of natural risks on risk maps:  earthquake (HORA III)  internet and intranet version  hail storms (HORA IV)  intranet version (since July 2007) 16 PROJECT FACTS

Earthquakes in Austria since 1201

Hailstorms in Austria © BMLFUW 2006

 project costs  about € 2 m  creation of an outstanding platform  approximate 50 million accesses are registered  HORA already fulfils all requirements of the EU Floods Directive 19 PROJECT FACTS

FURTHER STEPS 20 development of a 2 x 2 raster by laserscanning risk zoning system plans for further natural hazards permanent updating of data and files development of a comprehensive natural hazards portal

BENEFITS 21  risk assesment facilitates useful prevention measures  regional planning  claims management  prevention measures: e.g. building the house in safe environment  insurance companies are able to develop effective insurance cover concepts  HORA: first step of a functioning and global insurance solution for natural hazards

Thank you! Austrian Insurance Association - Your Regional Partner in CEE 22 AUSTRIAN INSURANCE ASSOCIATION