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Insurance Solutions

Formerly Moody’s RMS

Detailed and Comprehensive Assessment of Earthquake Risk

The Canterbury Earthquake Sequence of 2010-2011 stands as the world’s second-largest insured loss from an earthquake, while the 2016 Kaikōura Earthquake ranks among the most complex seismic events ever recorded.  The New Zealand Earthquake HD Model incorporates learnings and data from these significant events alongside the latest advancements in modeling methodologies to provide an unrivalled understanding of earthquake risk.

Navigate Tail Risk

Utilize the full spectrum of likely events that can affect exposures in New Zealand.

Shape Your Risk Perspective

Adjust model parameters to gain deeper insights into portfolio losses.

Enhance Risk-Based Pricing

Explicitly model the loss impact of all sub-perils including liquefaction and landslide.

destroyed building

Preparing for a 1-in-1,000 Year Loss

In September 2016, the Reserve Bank of New Zealand’s (RBNZ) capital charge was calibrated to a 1-in-1,000-year loss – one of the longest regulatory return periods globally.  It requires insurers to have enough capital reserved for an event more devastating than the Canterbury Earthquake Sequence (2010-2011).

What could a 1-in-1,000-year loss look like in New Zealand? How do you manage risk to such a return period? 

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The Unique Complexities of Managing New Zealand Earthquake Risk

There are several factors that differentiate New Zealand Earthquake (re)insurance.  Let’s look at how the Moody’s RMS New Zealand Earthquake HD Model helps you manage the risk with more confidence. 

High Seismic Activity

Leverage our large stochastic event set that incorporates very rare tail events and complex multi-fault earthquake ruptures.

Elevated Risk from Sub-Perils

Harness our high-resolution methodology, designed to capture all earthquake sub-perils, including a recalibrated liquefaction model.

New Zealand-Specific Policies

Capture Earthquake Commission (EQC) policy structures with our flexible financial model.

Strict Building Codes

Combine the latest engineering research with high-resolution claims data to reflect the damageability of the building stock.

devastated house

Understanding the Aftershock Cloud

Despite a decreasing frequency of aftershocks, their strength doesn’t similarly diminish over time.  A significant aftershock can occur months after the primary earthquake, a scenario we saw with the Christchurch event in 2010-2011.

Now, over a decade on from Christchurch, what lessons are to be learned from the experience with regards to the impact of aftershock events, and the potential application to other cities around the globe?

Find out what Moody’s RMS has learned, and how has this been applied to our modeling here

seismic chart

Insurance Australia Group (IAG) Selects RMS High Definition New Zealand Earthquake Model to Strengthen its View of Risk

…IAG has had a long relationship with RMS and we welcome its independent view of risk which provides an important contribution to reinsurance discussions as well as satisfying regulatory requirements. The flexibility afforded by the new platform represents a step change in discrete consideration of earthquake mechanisms.

Dr. Philip Conway

Natural Peril Specialist at Insurance Australia Group 

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Related Products

Empower your expert team with the latest New Zealand Earthquake HD Model data and insights, including delivery of data directly to your underwriter's laptop or tablet device through an API to underwriting systems or access to the complete model.

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Moody’s RMS Asia-Pacific Flood Models

Moody’s RMS extends its industry-leading inland flood models throughout the Asia-Pacific. Build a more profitable and sustainable portfolio with unmatched coverage and insights across the region.

risk modeler
Risk Modeler 2.0

Unlock insights and improve real-time decision-making with cloud risk modeling software.


Improve underwriting decision-making for cat-exposed business with an easy-to-use and highly configurable SaaS application.

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Find the Model to Fit Your Needs

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