NEWARK, Calif. - August 11, 2014 RMS, the world’s leading catastrophe risk management firm, today announced it has released its Economic Exposure Databases and Industrial Clusters Catalogs for the Philippines, South Korea, Taiwan, Thailand and Vietnam. The new suite of exposure datasets provide the location, configuration and economic values of exposure concentrations in the five countries to enable insurers and reinsurers develop a more comprehensive view of risk in Asia.
Companies can use the datasets to disaggregate their existing data to produce exposure heat maps that reveal where they are under or over-exposed, as well as perform gap analyses to identify growth opportunities. The RMS datasets can also be used by companies to augment and validate their existing exposure data, perform rapid post-event and what-if-scenario loss analyses, as well as strengthen their underwriting guidelines.
“Until now, the scarcity of exposure data for Asia has forced companies to rely on aggregate data, which hides the true magnitude of their risk,” said Neena Saith, director, business solutions at RMS. “By using the RMS datasets companies can now get a clear-cut view of exposure risk to sustain profitable business in these five countries. They can locate concentrations of exposure and characterize the risk profiles of exposure hotspots to develop more robust risk management strategies.”
The RMS datasets show how the diverse implementation of the Asia-wide industrial clusters policy has changed the risk composition of cities; many developed cities have moved their industrial zones away from residential and commercial areas. In Seoul, where the total economic exposure for residential, industrial and commercial buildings is around $663 billion, there is a high ratio of residential-to-industrial exposure.
Approximate Residential-to-Industrial Exposure
Economic Exposure in USD billions
National Capital Region, Philippines
Seoul, South Korea
Taipei City, Taiwan
Based on data from the RMS Economic Exposure Databases and Industrial Clusters Catalogs
Asia is exposed to multiple hazards; its coastal cities are particularly exposed to damage from tsunamis and typhoon-driven floods. Driving catastrophe risk skyward are clusters of industrial parks in areas that are exposed to a range of perils.
“Ulsan, South Korea, is an industrial exposure hotspot that is highly vulnerable to typhoons. The industrial center has $56 billion of industrial exposure and insurance penetration is increasing. On the west coast of Taiwan, which is exposed to tsunamis from the rupture of the Manila Arc, the Linhai Industrial Park in Kaohsiung has $5.5 billion of industrial exposure,” said Saith.
The RMS Economic Exposure Database includes building replacement values by line of business (residential, commercial, industrial) and by administrative regions. The RMS Industrial Clusters Catalog provides information on the exact location and size of industrial parks. Where data is available, it also includes details of the operator name and industry type.
The datasets are platform agnostic and can be used with RMS and non-RMS exposure and risk management software. Datasets for Indonesia, Malaysia, Hong Kong and Singapore will be released later in 2014.