In a recent interview with Reinsurance News, Jonathan Jackson, CEO of flood forecasting company Previsico, discussed the challenges and opportunities facing the flood insurance industry in 2026.
Flood-related insured losses continue to rise in 2025, reinforcing the broader trend of rising climate-driven claims and putting increasing pressure on the industry’s risk pools.
Globally, insured losses from natural catastrophes are expected to exceed $100 billion for the sixth year in a row, with flood events an ongoing underlying factor, although other disasters such as wildfires and severe convective storms dominated the data this year, according to recent data from Swiss Re.
Against the backdrop of mounting losses, Jackson highlighted the rapidly evolving nature of flood forecasting. “The flood forecasting landscape is changing rapidly for insurers and their corporate clients. The vast amounts of environmental, hydrological and infrastructure data available today bring both advantages and challenges,” he said.
He noted that while large amounts of data offer new opportunities, they also present significant obstacles. “Data complexity remains a major obstacle: While more information is available than ever before, reliably interpreting this information and applying it in the context of real-world exposures, operations and claims requires sophisticated tools and expertise,” Jackson explained.
Equally important is the need to translate predictions into actionable guidance. “Forecasts have little value unless they can directly inform operational decisions, underwriting strategies and long-term recovery planning. Translating raw data into practical guidance remains a key hurdle for risk managers, brokers and insurers seeking to stay ahead of increasingly erratic flood patterns,” he added.
Looking ahead to 2026, Jackson is optimistic about technological advancements in the industry. “We expect continued improvements in both areas. Advances in real-time data ingestion, AI-driven modelling, and interoperability between forecasting, asset and claims systems will enable insurers to take a more proactive stance. These developments will not only improve forecast accuracy but also increase confidence in warning triggering, contingency planning and capital allocation,” he said.
Jackson concluded by emphasizing the importance of strategic adaptation. “2026 will be a pivotal year for the flood insurance market. By combining strategic partnerships, advanced analytics and proactive adaptive approaches, insurers can move from reactive claims management to fully integrated risk resilience models.
“Organizations that embrace this evolution will be better able to protect customers, safeguard communities, and respond to an increasingly complex climate risk environment with clarity and confidence.”
