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This study applies the GIS environmental to estimate flood risk for Bengawan Solo in the Indonesia, and focuses particularly on the spatial data scarcity and extreme behaviour of hazard risk. The Monte Carlo Analysis and stage-damage function are used to estimate the uncertainty of flood damage spatially. Based on this algorithm, flood insurance premiums are estimated using a practical method that account for an insurer’s risk aversion and the dispersion rate for loss data. This study is practical relevance for insurance industries because it has been considered the demand of flood insurance presence in Indonesia, especially Bengawan Solo River Basin, which is currently not available.