The Chief Executive Officer of Previsico, Jonathan Jackson, the flood forecasting company, has critically appraised the current challenges and opportunities in the flood insurance sector in 2026, predicting that the year will be crucial for operators in view of the outlook.
This year flood‑related insurance losses have continued to escalate globally, reinforcing the broader trend of rising climate‑driven claims and mounting pressure on the sector’s risk pools.
Available industry data recently released by Swiss Re indicated that globally, insured losses from natural catastrophes were on track to exceed $100 billion for the sixth consecutive year, with flood events a persistent underlying contributor, even if other perils like wildfires and severe convective storms dominated headline figures this year.
Against this ugly scenario, Jackson in a recent interview with Reinsurance News, highlighted the rapidly evolving nature of flood forecasting.
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He explained: “For insurers and their corporate clients, the flood forecasting landscape is shifting rapidly. The sheer volume of environmental, hydrological, and infrastructure data available today presents both an advantage and a challenge
“Data complexity remains a major obstacle: although more information is accessible than ever before, interpreting it reliably—and applying it in the context of real-world exposure, operations, and claims—requires sophisticated tools and expertise”, the industry expert added.
According to him, equally important is the need to turn forecasts into actionable guidance, stressing that “forecasts hold little value unless they can directly inform operational decisions, underwriting strategies, and long-term resilience planning. Turning raw data into practical guidance continues to be a critical hurdle for risk managers, brokers, and insurers seeking to stay ahead of increasingly volatile flood patterns.”
Speaking on the outlook of the flood insurance sector in 2026, Jackson expressed optimism about technological advances in the sector.
He projected: “We expect to see continued improvements in both areas. Advances in real-time data ingestion, AI-driven modelling, and interoperability between forecasting, asset, and claims systems will empower insurers to take a more proactive stance. These developments will not only sharpen predictive accuracy but also strengthen confidence in early-warning triggers, contingency planning, and capital allocation.”
Jackson rounded off his chat with the news medium by emphasising the importance of strategic adaptation, stressing that “2026 will be a pivotal year for the flood insurance market. By combining strategic partnerships, advanced analytics, and a proactive approach to adaptation, insurers can shift from reactive claims management to a fully integrated model of risk resilience.
“The organisations that embrace this evolution will be better positioned to protect customers, safeguard communities, and navigate an increasingly complex climate risk environment with clarity and confidence”, the Previsico boss added.
