RMS Colombia Earthquake Model Approved for Use by Superintendencia Financiera de Colombia
Official approval by the Colombian insurance regulator extends the choice of models available to national and global firms managing and growing Colombia earthquake portfolios
NEWARK, Calif. -
February 21, 2017 -
RMS, the world’s leading catastrophe risk management firm, announced today that it has received official approval from the Colombian insurance regulator, Superintendencia Financiera de Colombia (SFC), to offer catastrophe modeling services to national and global insurance companies writing earthquake risk in Colombia. Firms writing earthquake risk in Colombia may only use SFC-approved catastrophe models to determine their probable maximum loss, average annual loss and to manage their capital reserves.
“Colombia has one of the highest seismic hazards in South America, with significant exposure concentrations on active faults, including three of its most populous cities– Bogotá, Medellín, and Cali. And yet, despite the country’s steadily increasing economic growth, insurance penetration is still low,” said Victor Roldán, regional head for Latin America at RMS. “Now, insurers can access the latest scientific understanding of the regional earthquake hazard and modeling capabilities from RMS to improve their risk selection and pricing. This will enable the (re)insurers to develop coverages to help strengthen the country’s resilience to earthquake risk while also improving their portfolios and capital reserves to grow their business.”
The RMS Colombia Earthquake Model is one of eight models in the company’s suite of South America Earthquake Models. The model suite also includes Argentina, Bolivia, Brazil, Chile, Peru, Ecuador, and Venezuela; combined the models provide the most comprehensive coverage for managing earthquake risk in all seismically active countries in South America.
To develop the models, RMS collaborated with leading South American seismology and engineering experts, including Colombia-based Universidad de Los Andes and the Instituto Colombiano de Geología y Minería. Based on a single region-wide catalog of crustal and subduction zone seismic sources and including more than 134,000 stochastic events across South America, the models also capture the influence of local soil conditions on earthquake shaking and incorporate local design and construction practices into assessments of building vulnerability.
RMS solutions help insurers, financial markets, corporations, and public agencies evaluate and manage catastrophe risks throughout the world. RMS has over 1,200 employees across 13 offices in the US, London, Bermuda, Zurich, India, China, Japan, Singapore and Australia - our products and models covering six continents.
We lead an industry that we helped to pioneer—catastrophe risk modeling—and are delivering models, data, and risk management solutions on the RMS(one)® platform to transform the world’s understanding and quantification of risk through open, real-time exposure and risk management.
More than 400 insurers, reinsurers, trading companies, and other financial institutions trust RMS solutions to better understand and manage the risks of natural and human-made catastrophes, including hurricanes, earthquakes, floods, terrorism, and pandemics.