Tool will help (re)insurers define individual and aggregate exposures
Reinsurance broker Aon Benfield has launched a storm surge model for Germany.
According to the broker, storm surge has generally not been included in German buildings policies to date because of (re)insurers’ inability to assess the risk accurately.
The new model, developed by Impact Forecasting, will help firms define individual and aggregate exposures across the €300bn-worth of structures at risk, Aon Benfield said.
The model analyses variables such as storm frequency, wind speed, tidal movements, wave height, and the efficacy of Germany’s current coastal defence systems.
"By generating thousands of stochastic scenarios, this new storm surge model quantifies re/insurers’ exposures and potential claims burden, making the potential danger highly transparent,” said Jan-Oliver Thofern, chief executive of Aon Benfield Germany, in a statement.
He added: “The model will help create new opportunities to drive the market, providing (re)insurance protection for local business and residents who may have been at risk from a storm surge event.”