Companies were mindful of devastation from recent earthquakes and typhoons
Catastrophe modeller RMS and Asia Capital Reinsurance have agreed to work together to develop catastrophe risk models enabling ACR to apply the models of particular relevance to the Asian market.
Through this non-exclusive agreement, ACR has licensed RMS’ full suite of Asian models.
RMS will also pursue under the agreement a research and development agenda prioritized to enable ACR to deliver innovative re/insurance solutions tailored to the unique needs of the Asian market.
The scope of the collaboration includes enhanced and expanded coverage for natural hazard models across the region, emerging issues of food security and infectious diseases, as well as activation of micro insurance solutions on viable and sustainable principles.
“This exciting agreement is an opportunity to progress toward a deeper understanding of risks in Asia, and help address the gaps where greater risk insight is needed by the industry,” said John Tan, chief executive of ACR. “Through this collaboration we will be making significant strides towards providing clients with a true view of the technical risk based on their exposures in Asian markets. At the same time, we will enhance our risk interpretation and analytical capabilities, ensuring we are at the forefront of the industry in providing value to clients,” added Tan.
The 2008 earthquake in Wenchuan, China, together with the typhoons and earthquakes that have brought devastation to the Western Pacific region in recent years, highlight the scope of natural hazards in Asia. Globalisation also brings new and emerging risks to Asia as a result of changing lifestyles, travelling patterns and economic activities. The economic development coupled with climate change is putting pressure on arable land for food and clean water sources, impacting on the risk landscape. “Asia’s insurance industry is set to play a major role on the global stage and this demands a deeper understanding of new and emerging catastrophe risks,” said Hemant Shah, president and CEO of RMS. “ACR is an innovative market leader with in-depth knowledge of the Asian insurance market, and RMS is committed to providing solutions that continue to extend the bounds of risk management best practice. We look forward to this exciting cooperation.”