New catastrophe risk models underline growing importance of Asian insurance market
Risk Management Solutions (RMS) have produced new earthquake models for the emerging Asian market - as insurance and reinsurance companies continue to grow and diversify.
These include earthquake models for China and India and earthquake casualty models for Japan, Taiwan and China.
Jason Futers, vice president and Asia market practice lead at RMS said: "The increasingly global nature of the insurance and reinsurance business demands this type of sophisticated natural catastrophe risk assessment.”
“Earthquake risk is of particular concern since this low frequency but high severity hazard threatens a significant portion of urban Asia."
The RMS China earthquake model assesses the seismic risk to property across China, including Hong Kong and Macau, by simulating approximately 85,000 earthquake events.
The RMS Indian earthquake model allows specific location analysis, and draws on the lessons from the recent Kashmir catastrophe of 2005. The model comes at a time when catastrophe premiums in India are experiencing rapid growth.
The RMSR Japan, China, and Taiwan Earthquake Casualty models predict the injury and mortality rates of earthquakes. The models consider several different factors – including the number of people exposed, vulnerability of the structures, and potential for secondary hazards such as fires.
China is particularly vulnerable to earthquake activity, with almost half of the population located in areas of moderate to high seismic hazard risk.