RMS Further Strengthens Asia Pacific Capabilities in Version 18
Version 18 release includes new and updated capabilities to underwrite, drive growth and manage catastrophe risk across multiple perils, regions and risk categories
NEWARK, Cali -
July 16, 2018 -
RMS, the leading global risk modeling and analytics
firm, announced today the release of Version 18 (V18) the latest version of its
leading catastrophe risk management software.
Version 18 expands RMS clients’ global
capabilities and brings to light new opportunities using the latest science,
innovative methodologies and analytics to support profitable portfolio growth. Specifically,
V18 provides the latest modeling insights to drive growth across the varied markets
of the Asia Pacific region, including flood, which is a leading cause of
insured loss in countries such as India.
The Asia Pacific model suite is being expanded to
include new peril models for India Flood, Philippines Typhoon and Flood, and
South Korea Earthquake. These newly launched peril models complement existing
earthquake and typhoon models in these markets, providing a more holistic, market-focused
solution. Expanding this regional focus, V18 also includes important updates to
the Australia Earthquake and Australia Cyclone models, as well as to the India
Earthquake model. India Flood covers the whole of India and includes tropical
cyclone, and pluvial and fluvial flooding, and is the first fully probabilistic
flood model for the Indian insurance market. The Philippines model provides wind, storm
surge and inland flood model considering tropical cyclone and non-cyclonic
rain, which provides a comprehensive solution to model climate hazard. In
addition, Post Event Loss Amplification (PLA), which captures the potential for
losses after severe events to be higher due to the impact of claims inflation,
economic demand surge as well as super catastrophes, has been added to all new
and updated models.
Looking beyond the Asia Pacific region, V18
expands the North Atlantic Hurricane model to cover the risk from hurricanes in
the East Pacific basin. It also features storm surge updates in the U.S., as
well as vulnerability updates across the U.S. and the Caribbean. The
high-fidelity modeling tool, RiskAssessor, is being expanded to provide more
accurate hurricane wind risk assessments in all regions of the North Atlantic
Version 18 also underlines RMS’ commitment to
global solutions with important expansions of the Marine Cargo and Specie,
Builders Risk, Industrial Facilities and Terrorism capabilities; as well as the
release of Industry Exposure Databases and Industry Loss Curves in peril
regions impacted by the release.
Mohsen Rahnama, Chief Risk Modeling Officer, RMS
said: “Asia Pacific has always been important to us. The inclusion of new
models for the region, including Philippines Typhoon, India Flood and South
Korea Earthquake should help enhance the opportunities for established
operators and new entrants to better understand the potential for risk, and for
growth, in these important markets. Flooding is an international phenomenon and
V18 offers customers a more granular view of this on a more global scale.
Updates can take many years in development, however, it is timely that the
Australia Earthquake and Cyclone updates come just after we opened our
Australia office last year. With the release of Version 18 we are confident
that we are continuing to deliver the high standard of accurate information and
analysis that our clients know and expect from RMS.”
Notes to Editors
What is new in Version 18?
Philippines Typhoon: The Philippines is
one of the most disaster-prone countries in the world, with around 20 cyclones
per year, and eight of these making landfall. New model capturing risk from
wind and flooding, coastal storm surge and season precipitation-driven
flooding. The model expands the RMS suite of climate modeling solutions to the
Australia Cyclone: Model update
includes the most recent market and meteorological data and lessons learned
from recent events, such as Cyclone Yasi in 2011, Cyclone Marcia in 2015 and
Cyclone Debbie in 2017. The update also accounts for the rise in properties at
risk, with the number of dwellings within 200km of the coast increasing by 15%
between 2006 and 2016.
Australia Earthquake: Model update reflecting
the latest scientific view of seismic hazard by incorporating data from the
2018 national seismic hazard map from Geoscience Australia. Updated event rates
and ground motion models, combined with insight from local experts, provide the
most up-to-date view of seismic risk in the country.
India Flood: New fully probabilistic
Flood model. Flooding is the most significant natural hazard affecting India,
comprising of about three-quarters of natural catastrophe losses. The new model
combines the latest science with local engineering expertise, with an event set
based on 125,000 events across 9,033 catchments throughout India; accounting
for monsoon rainfall and expanding areas of impermeable ground in major cities
such as Mumbai, Chennai and Delhi.
India Earthquake: India earthquake model is updated
using the latest sources and vulnerability models with the signification
validation of model using the systematic approach working with clients and
academia. Update with high resolution geotechnical
information for hazard amplification to differentiate risk. Over a thousand vulnerability
functions are included with additional solutions for underwriting key exposures
such as industrial facilities, buildings under construction, and marine cargo
and specie risks. The financial model includes additional losses from landslide
and liquefaction hazards.
South Korea Earthquake: New model model
covers ground shaking, liquefaction, and landslide risk, enabling users to
comprehensively assess earthquake risk in South Korea. While events in this
region are relatively rare, they have the potential to be damaging. In 2016 the
Mw 5.4 Gyeongju Earthquake hit and in 2017 the Mw 5.4 Pohang Earthquake
occurred close to the city of Pohang, damaging more than 23,000 buildings.
Marine Cargo: Update allowing detailed
insight into cargo fragility and exposure accumulation, enabling the
identification of vulnerable concentrations of static cargo, the measurement of
port accumulations, and the analysis of loss severity for key events.
Terrorism: Updated scenario
model including updates to targets database for US, UK and Belgium; updates to
hazard footprints and changes to the default time of day, to react to changes
in peak times across different occupations.
North America Hurricane: Storm surge update
incorporating new methods and data made available since the last U.S. storm
surge model update. This enhances risk differentiation between defended and
undefended areas prone to storm-surge. Also included are defense assumptions
and wave treatment within the storm surge hazard module, as well as basement
functionality and first floor height assumptions within the vulnerability
Post Loss Amplification: Post Loss
Amplification (PLA) has been added for all the updated and new models. PLA captures the potential for
losses after severe events to be higher due to the impact of claims inflation,
economic demand surge as well as super catastrophes.
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.
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