(Image credit: Pixabay.)
Insurance Australia Group (IAG), the largest general insurance company in Australia and New Zealand, has licensed AIR’s (Boston; a subsidiary of Verisk, Jersey City, N.J.) new Earthquake Model for New Zealand to help manage its catastrophe risk.
“This model has been developed to help meet the wide spectrum of earthquake risk management needs of the insurance industry,” comments Dr. Milan Simic, executive VP and head of global business development, Verisk Insurance. “This includes the capability to use two seismicity models for the region. One is a time-independent model (TID) with no memory of past rupture history; the other is a time-dependent (TD) model that considers historical or prehistorical ruptures of specific seismic sources. Also captured in the model are the effects from subperils, including ground shaking, liquefaction, landslide, transocean basin tsunami, and fire following earthquakes.”
“AIR provides a scientifically credible view of risk, and we welcome their sophisticated earthquake model for New Zealand,” comments Philip Conway, peril pricing manager, IAG. “As the largest insurer in New Zealand, we pride ourselves on being able to differentiate between risks based on their location, building type, occupancy, age, and other parameters that drive vulnerability, as this allows us to manage our risk as well as provide the mechanisms to encourage mitigation in the community. At the same time, having access to independent models such as AIR’s is of key importance to both our internal stakeholders and external partners.”
Managing New Zealand Risk
“Our collaboration with IAG has been ongoing for more than a decade, and we’re pleased that IAG has decided to leverage AIR’s new Earthquake Model for New Zealand to assist in managing their New Zealand risk,” comments Ashish Jain, VP and managing director, global business development, Verisk Insurance for Southeast Asia and ANZ. “This relationship further strengthens our commitment to bringing new and updated solutions to the sophisticated insurance markets in Australia and New Zealand.”