Financial Times FT.com

Insurers rise to flood challenges

By Andrea Felsted, Insurance Correspondent

Published: October 26 2008 18:57 | Last updated: October 26 2008 18:57

From forecasting the likelihood of a hurricane to working out thousands of random outcomes that could knock their life funds off course, insurers use sophisticated models to help them price their policies.

But floods caused by heavy rains, which are in essence random, are prompting them to turn to unusual means to work out when a dangerous and expensive downpour might strike.

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