Catastrophe risk modelling firm AIR Worldwide has upgraded its earthquake and typhoon models for Southeast Asia, providing insurers with an extensive and updated view of disaster risk in the region.
The new earthquake model takes into account the additional tsunami and liquefaction risks for Indonesia, the Philippines, and Taiwan. Meanwhile, the typhoon update features a new precipitation-induced flooding module built using high-resolution data and also features a probabilistic storm surge module for Hong Kong, the Philippines, and Taiwan.
The model was also expanded to include the following areas: Guam, Macau, Saipan, and Vietnam for typhoon risk; and Hong Kong, Macau, Vietnam, Singapore, Thailand, Brunei, and Malaysia for earthquake risk.
"Southeast Asia has some of the fastest-growing economies. Located partly on the Ring of Fire, it's seismically one of the most active regions in the world, with earthquakes of magnitude 8.0 or larger occurring once every eight to ten years, on average," said Dr. Jayanta Guin, executive vice president and chief research officer at AIR Worldwide.
"On the atmospheric side, more than 25 tropical cyclones typically form each year in the Northwest Pacific. A wealth of data has become available due to the number of catastrophes in this region, and AIR scientists have been conducting extensive research over the past ten years to better understand these events. The results are enhanced catastrophe models that will provide insurers and industry stakeholders with the most advanced view of shake, tsunami, liquefaction, wind, precipitation-induced flooding, and storm surge risk in Southeast Asia."
To make sure that the models are robust and scientifically rigorous, AIR built them from the ground up, with each component independently validated against multiple sources and data from historical events. These models are available in the CATRADER® Version 18 and Touchstone® 4.0 catastrophe risk management systems. Touchstone 4.0 also features an array of enhancements that aim to provide better performance, workflow efficiency, and overall user experience.
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