logo image

NEWARK, Calif. - September 15, 2016

Commenting on Typhoon Meranti, Robert Muir-Wood, chief research officer, RMS, said:

“Meranti, the strongest typhoon this year, has struck Taiwan and China with a triple-whammy of typhoon-related perils: a combination of wind, flood and storm surge. The storm has now moved inland and weakened, while continuing to produce high rainfall totals and flooding. We expect damage in China to be higher than Taiwan, due to the mainland’s higher concentrations of coastal exposures and population. While the storm at Cat 4 intensity skirted the southern end of Taiwan island, it made a direct hit at Cat 3 intensity on the mainland. Close to the point of landfall in the island port of Xiamen there has been quite significant wind damage, including to the windows of high rise buildings in addition to the more familiar rainfall related and storm surge flooding.

Southeast Asia is disaster central for catastrophic events and suffers frequent typhoons, though Taiwan is generally well-equipped and prepared to deal with these storms and has good coastal defenses to mitigate against surge. Economic losses from typhoons in Taiwan tend to be limited since typhoons, including Meranti, approach from the east in this region while exposures are concentrated in the west of the island.

For Meranti, high winds affected the port and industrial cities of in Kaohsiung and Tainan in southwest Taiwan. Here the industrial clusters are dominated by the light industrial electronic, semiconductor and the bio-tech sectors. The buildings in these sectors are generally designed to withstand typical extreme typhoon winds and from our field surveys we have found that buildings in industrial parks are sited on elevated ground to minimize flood risk, while the buildings themselves have stepped entrances, which further increases protection against flooding. While Meranti skirted past the east coast of Taiwan, early indications are that hurricane force winds toppled some cargo containers in the Kaohsiung port, while some ships have come unmoored. The industrial clusters may also have suffered peripheral impacts.

For China the low take-up rates for wind and flood insurance will limit the insurance impacts of the storm. However, this was the strongest storm to hit Xiamen in more than sixty years and something like a ten-year return period storm for this section of the Southeast China coastline.”

Ben Brookes, vice president, capital markets at RMS, added:

“Any ILS exposure to China Typhoon will probably be via the more global collateralized reinsurance contracts and in more diversified portfolios – but even then it’s likely to be in very small proportions so losses from Meranti are not going to be of much concern for ILS investors.

Meranti is, however, yet another reminder of the huge potential for ILS in the region. It would be relatively straightforward to put parametric protection in place for an event like this. Category 4 and 5 storms that have the potential to strike regions of high populations and exposures are exactly the type of event such protection can be designed for, particularly if issued by a state sponsor.”

RMS will provide further updates following a full evaluation of the storm. No insured loss estimates are planned at this time. Below is additional perspective on Typhoon Meranti and typhoon risk in the region.

Additional Information

  • Typhoon Meranti made landfall on Fujian Province, China, at around 20:00 UTC on Wednesday September 14 and is reported to be the equivalent of Category 3 strength on the Saffir-Simpson Hurricane Wind Scale (SSHWS) when it made landfall.
  • Prior to making landfall on China, Meranti bypassed approximately 40 mi (65 km) southwest of Taiwan, bringing hurricane force winds to Pingtung County (pop. ~2.7m), Kaohsiung County (pop~ 2.7m), Tainan County (pop. ~1.8m) and most western parts of Taitung County (pop. ~3.5m)
  • The storm caused around 650,000 power outages in Taiwan, prompted evacuations and caused disruption to transport and business, as well as toppling pylons, trees and vehicles.
  • Damage reports are still emerging from China, but reports indicate that streets have flooded in the city of Xiamen, 1.65 million people have lost power in Fujian Province, and tens of thousands of people have been evacuated. The city of Xiamen has a well-developed economy, including financial services and industrial zones (the latter of which are also present in Zhangzhou, slightly inland). 
  • Meranti is the Strongest typhoon to approach Taiwan since Typhoon Bilis in 2000. Bilis made landfall on the coast of southern Taiwan, the main area also impacted during Meranti.
  • Bilis caused disruption across Taiwan, and caused approx. $186million in property damage. There were 14 fatalities and 400 homes were destroyed.
  • Southern Taiwan was impacted in July by Typhoon Nepartak, but again damage was fairly limited.
  • Typhoon Morakot (2009) was worst storm in Taiwan in terms of fatalities (650) and loss ($3 billion +) – no other recent events come close to these figures. Morakot was only Category 1 at landfall and most damage was due to flooding.
  • There has been heavy rainfall from Meranti, but accumulations are much lower than has been historically seen in Taiwan (up to 1,600mm in 24 hours for typhoon Morakot in Pingtung county).
  • During Typhoon Soudelor (2015), around 5 million households lost power – much higher than the estimated 260k for Meranti.
  • China has already been affected by significant seasonal flooding earlier in the summer.
  • The insured building stock in Taiwan principally consists of mid to high rise multi-family apartments, commercial buildings and industrial properties of all types. The predominant construction type of these structures is reinforced concrete with some properties made of steel and steel reinforced concrete. These structures are engineered and designed to withstand earthquake shaking as well as typhoons gusts given the proximity to active faults and its geo-location in the path of typhoons in the western Pacific. The seismic design ensures that the structure of the buildings have sufficient capacity to accommodate ground movements. This demands special attention in the design and construction and is also beneficial to wind resistance where the structural systems are unlikely to experience severe damage in a tropical cyclone. The non-structural components are also designed to withstand earthquake and wind loads to ensure that the likelihood of envelope breaching is low to avoid water ingress in moisture rich tropical cyclones.
  • RMS research shows that it is generally expected that wind damage will remain confined to non-structural damage among multi-family, commercial properties while single family dwellings will suffer relatively more damage and industrial properties relatively less given their economic importance.
Related Resources
May 07, 2021
RMS Builds on Its Risk Modeler Cloud-Based Application

Newark, Calif. – May 7, 2021 – At its annual Exceedance conference this week, RMS, the world’s leading catastrophe risk solutions company, demonstrated the benefits (re)insurance customers are experiencing by moving to RMS Risk Modeler™, the cloud-based risk modeling application running on the RMS open cloud platform, Risk Intelligence™. Risk Modeler, a next-generation cloud-based modeling application, is designed to meet the complex needs of risk analysts and cat modelers at scale. Risk Modeler enables real-time risk analytics and unified, high-performance execution of RiskLink models and High-Definition (HD) simulation models. Designed with a deep understanding of customer requirements and leveraging the latest technological innovations, Risk Modeler easily integrates with other on-premise applications as well as other cloud applications through open APIs and export services, giving customers greater flexibility and choice. This week at Exceedance, the industry has heard from RMS customers about the advantages they are gaining by adopting Risk Modeler to help manage their risk portfolios.   Gallagher Re, Price Forbes & Partners Ltd, and Unipol spoke during the conference keynotes about their experiences with Risk Modeler to date. Howden Group also shared their insights on the benefits of Risk Modeler.  Neil Bramley, analytics executive, Gallagher Re, “Gallagher was keen to take advantage of the SaaS Solution, pushing the technology harder and faster, leveraging the benefits and scale of secure cloud computing to ultimately create tangible advantage and upsides for our clients. Risk Modeler helped us grow our analytical capability tremendously and our usage stats are through the roof compared to last year, with the added benefit of zero downtime whenever our divisions are looking to access new functionality and solutions.” Gian Luca De Marchi, group chief risk officer, Unipol Gruppo S.p.A., “Risk modeling through the Risk Modeler application allows us to run portfolio analyses and to support risk management assessments for risk profiling, risk monitoring, capital allocation, and optimal risk transfer. Now, the RMS models could help us in moving to an internal model, reducing the gap between economic capital and regulatory capital, and provide robust support in meeting regulatory requirements in particular in relation to stress tests.” David Flandro, managing director, Head of HX Analytics, Howden Group, “Risk Modeler together with RMS’s trusted science is an important part of our analytics ecosystem that helps Howden provide a differentiated service to our clients and partners. The SaaS delivery and API-based development framework is well positioned to help service our digital-first vision with distinction.”  Alexander Hanks, executive director, head of actuarial & analytics, Price Forbes & Partners Ltd, “We worked with RMS as early adopters, making full use of Risk Modeler’s API first development approach to fully integrate modeling with our own cloud tools, switching off RiskLink and RiskBrowser in the process. Gone are the days of manually working with spreadsheets, copying and pasting and relying on manually re-running modeling of jobs.  The automation work has taken manual time-consuming tasks away and we're able to spend much more time on interpreting modeling results and providing deeper insights to our clients.” Speaking at the conference, RMS CEO, Karen White, said, “When RMS launched Risk Modeler 2.0 in 2020, more customers started on their cloud migration with us. We are seeing more momentum in the industry for digital first strategies. Today, insurers, reinsurers, and brokers from every major global geographic region are on the RMS platform. Leveraging leading models, technology, and the cloud to gain greater risk insights helps them to avoid surprises, confidently deploy more capital, and potentially develop new products and new business models.”

Read More
May 06, 2021
RMS Unveils Significant New Event Response Innovations in ExposureIQ

Newark, Calif. – May 6, 2021 – RMS, the world’s leading catastrophe risk modeling and solutions company, announced new innovations to ExposureIQ™ on the Risk Intelligence platform, including real-time catastrophe event visualizations and more powerful reporting. RMS also unveiled new capabilities to allow cross-portfolio accumulations across reinsurance and insurance workflows. ExposureIQ is an innovative, cloud-based exposure management application designed to help portfolio managers gain deeper insights into their books, scaling to millions of locations, enabling easy discovery of hotspots, diversification, and portfolio re-balancing. The application provides access to exposure information which leverages events and footprints from RMS Event Response and RMS’s unique HWind real-time forecasting capabilities, to help gain a quicker and more accurate assessment of potential losses before, during, and after an event. Real-time analysis and insight into portfolios allow for alignment with a company’s risk appetite, exposing threats and opportunities within their portfolio. The latest ExposureIQ release provides powerful reporting with an in-app dashboard that allows portfolio analysis across the most critical building criteria, allowing customers to understand how varying geocoding resolutions impact results as well as understanding which building occupancies and construction types are driving their losses. This advanced reporting functionality speeds up analysis and empowers portfolio managers to make faster, better-informed decisions. ExposureIQ is now the only application in the market to provide near real-time event visualization through a powerful new mapping module that integrates RMS Event Response and RMS HWind data. There’s no longer a need for customers to download and upload data to their system. Customers can now automatically access the latest event data, visualize events against exposures, and run accumulations – all within the application on a near real-time basis. At its annual Exceedance Conference, RMS demonstrated how ExposureIQ will expand on these capabilities to allow customers to run accumulations across both their insurance and reinsurance books of business. It will enable users to easily build structures that represent business hierarchies in an intuitive way. For the first time, customers will be able to run accumulations across portfolios and across cedents all in one application and leverage the RMS rich data catalog derived from our market-leading model science. Speaking at the annual RMS Exceedance conference, RMS executive vice president, product, Cihan Biyikoglu, said: “Exposure management is one of the most important aspects in terms of overall business profitability and keeping business risk appetite in check. Real-time exposure information such as wind forecasting from RMS Event Response gives customers the insights and control they need during critical points before, during, and after an event.  The inclusion of cross-portfolio and cross-cedant accumulation in this release takes portfolio analytics to an unprecedented level. RMS understands the importance of making decisions based on quality data and insights. ExposureIQ brings together excellence in modeling with the flexibility, scale, and performance of the cloud to enable companies to develop a comprehensive view of their portfolio, optimize workflows, generate quality insights, and improve profitability.”

Read More
May 05, 2021
RMS Announces New Models and RiskLink Version 21.0

Newark, Calif. – May 5, 2021 – RMS, the world’s leading catastrophe risk modeling and solutions company, today announces new models.  Speaking at the annual RMS Exceedance conference, Mohsen Rahnama Ph.D., chief risk modeling officer and executive vice president, said: “Risk is increasingly complex and connected. RMS is focused on providing the highest quality and most transparent, robust catastrophe models to the industry in this environment. With the new inland flood models and global flood hazard maps, we address an important set of regions where flood is the most important peril, and now cover 100 percent of flood premiums written worldwide. The significant update to the RMS North Atlantic Hurricane Models incorporates the latest science, and applies the learnings from 2017 onward.”  Global Flood Coverage Key flood models and maps announced today at Exceedance 2021 include: A new inland flood model for China will be available in June 2021, concurrently on both RiskLink Version 21.0 and Risk Modeler, the RMS cloud platform for model execution and analytics.  New inland flood models for New Zealand and Southeast Asia (Thailand, Singapore, Malaysia, and Indonesia) are available in the second half of 2021. Global flood hazard maps for over 200 countries will also be available in the second half of 2021. With this significant expansion, the RMS Global Flood Solution Suite now offers unmatched high-resolution flood model coverage and a unified approach to manage all global flood risk. These models and maps cover 100 percent of global property gross written premiums for flood. North Atlantic Hurricane Significant updates to the industry-leading North Atlantic Hurricane (NAHU) Models were also announced. The North Atlantic Hurricane Models Version 21.0 now include medium-term event rates, lessons learned from the 2017-2020 hurricane seasons, and a new alternative view of vulnerability for Florida Residential Lines. Importantly, RMS incorporated an alternative view of risk accounting for the Florida Building Code 25 percent Roof Replacement Rule, which was expanded from the High Velocity Hurricane Zone (HVHZ) to cover the entire state of Florida in the 2017 Florida Building Code. These key updates empower customers to make more informed rate setting decisions. Additional 2021 RMS Models RMS Canada Wildfire Model has been added to the RMS North America Wildfire Models Suite and is available now. Canada Wildfire has coast-to-coast coverage for Canada. Consistent with the RMS U.S. Wildfire Model, the Canada model incorporates ignition and spread of wildfires, ember footprints, smoke footprints and urban conflagration, as well as the financial model that include hours and distance clauses for representation of policy terms.  RMS Cyber Solutions Version 5.1, available now, incorporates a new dashboard for underwriters providing powerful cyber underwriting analytics and rich data covering cyber incidents and threats.   RiskLink Version 21.0 RiskLink 21.0 will be available June 2021. All RiskLink models will be available concurrently on both RiskLink and Risk Modeler. 

Read More
About RMS

Risk Management Solutions, Inc. (RMS) helps insurers, financial markets, corporations, and public agencies evaluate and manage global risk from natural and man-made catastrophes, including hurricanes, earthquakes, floods, climate change, cyber, and pandemics. RMS models underlie the nearly $2 trillion Property & Casualty industry and many insurers, reinsurers, and brokers around the world rely on RMS model science.

RMS helped pioneer the catastrophe risk industry, and continues to lead in innovation by marrying data and advanced model science with leading-edge SaaS technology. Leaders across multiple industries can address the risks of tomorrow with RMS Risk Intelligence™ (RI), our open, unified cloud platform for global risk, enabling them to tap into RMS HD models, rich data layers, intuitive applications, and APIs.

Further supporting the industry's transition to modern risk management, RMS spearheaded the Risk Data Open Standard (RDOS), a new modern open standard data schema designed to be an extensible, flexible, and future-proof asset within modeling/analysis systems.

RMS is a trusted solutions partner enabling effective risk management for better business decision making across risk identification and selection, mitigation, underwriting, and portfolio management.

Visit RMS.com to learn more and follow us on LinkedIn and Twitter.

(C) 2021 Risk Management Solutions, Inc. RMS, the RMS logo, and RMS Risk Intelligence are trademarks of Risk Management Solutions, Inc. All other trademarks are property of their respective owners.

Media Contacts

Matthew Longbottom

PR Lead, EU and APAC
+44 20 7444 7706 prteam@rms.com

Devonne Cusi

PR Lead, Americas
+1 551 226 1604 prteam@rms.com
cta image

Subscribe to Our Newsletter

close button
Overlay Image
Video Title

Thank You

You’ll be contacted by an RMS specialist shortly.

RMS.com uses cookies to improve your experience and analyze site usage. Read Cookie Policy or click I understand.

close