Aon Benfield, the global reinsurance intermediary and capital advisor of Aon Corp., has reported that “catastrophic losses in the first quarter and Solvency II are driving the need for insurers to boost their understanding of non-modeled perils.”
As a result the Aon Benfield UCL Hazard Centre is hosting a seminar entitled -Getting to grips with non-modeled perils – on the 20th of July “to focus on the hazard and vulnerability characteristics of tsunamis, volcanoes and landslides that insurers should know and consider when assessing their risks.”
The bulletin announcing the seminar pointed out that the “tsunamis generated by the Japan and Chile earthquakes, plus the disruption caused by the Icelandic and Chilean volcanic eruptions, are recent illustrations of why insurers need to better understand how non-modeled perils could impact their portfolios.”
In addition, calculating the potential risks from these perils must include how they “contribute to insurance losses and how they link to modeled perils, such as earthquake and windstorm”
Paul Miller, head of International Catastrophe Management at Aon Benfield Analytics, pointed out: “It’s crucial to understand what exactly catastrophe models do and do not model. In Japan, for instance, we have seen considerable losses from non-modeled sources, especially the tsunami and the knock-on implication affecting contingent business interruption. At Aon Benfield we work closely with insurers to identify and account for non-modeled perils, ensuring they have a more accurate view of their overall catastrophe risk.”
Dr. Steve Edwards of the Aon Benfield UCL Hazard Centre, added: “The seminar is designed to highlight the important characteristics of the key non-modeled perils, which insurers should know and consider when assessing their risks. For example, around 80% of damaging tsunamis are produced by earthquakes, but other significant sources include volcanic eruptions, volcanic island collapses and submarine landslides. We are working closely with the insurance industry to understand what research and knowledge are needed – regarding both tsunami hazards and the vulnerability of insured assets – in order to produce useful and accurate tsunami catastrophe models.”
Source: Aon Benfield
Topics Catastrophe Profit Loss Aon
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