Risk modelling and analytics specialist RMS has released new typhoon risk models for South Korea and Taiwan, as well as earthquake models for Malaysia, Singapore, Thailand, and Vietnam.
These risk models will help insurers and reinsurers in the region improve their catastrophe insurance capabilities by informing underwriting decisions. Having a better view of the risks will help in the efficient allocation of re/insurance capacity and help stimulate growth in the market.
The typhoon risk models for South Korea and Vietnam cover both wind and flood risks, and will also further enhance the existing typhoon models of neighbouring markets such as Japan and China, which are often hit by the same storms.
Mohsen Rahnama, RMS chief risk modelling officer, commented: “We have used all our experience and expertise from tropical cyclone modelling across the globe to develop these new models for South Korea and Taiwan. Although non-life premium growth in these territories has been strong, penetration remains low and this is a significant opportunity for insurers and reinsurers to bridge this protection gap.”
Meanwhile, the earthquake models for Malaysia, Singapore, Thailand, and Vietnam add to the seven existing earthquake models in the region. This will enable re/insurers to accurately assess portfolio accumulations, reinsurance capacity, capital requirements, and the risk to large accounts, as more data is now available to paint a more detailed picture.
“With Southeast Asia among the fastest developing regions in the world, there is a huge opportunity for our clients to underwrite this increasing exposure if they can accurately represent potential future losses from individual risks to treaty reinsurance,” Rahnama said. “These new earthquake models will help them to do this.”
RMS added that a fully probabilistic flood model for India is in the works and it’s expected to be released next year. This will help re/insurers better manage losses from both river and pluvial flooding incidents that affect major urban centres.
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