Risk Management Solutions launches China, Taiwan typhoon model

Catastrophe modeler Risk Management Solutions Inc. has launched a typhoon model for mainland China and Taiwan.

The model is based on data from more than 24,500 storms derived from the China Meteorological Administration, Newark, Calif.-based RMS said Wednesday in a statement.

According to the Chinese agency, about nine typhoons have made landfall per year on average since 1950, RMS said.

Coverage under fire policies

RMS said the model has been developed to help insurers and reinsurers try to quantify wind and related flood losses, which typically are covered by fire policies in China.

“Although wind and flood damage are driven by the same typhoon events, the new model allows companies to quantify the losses independently,” Matthew Grant, global head of client development at RMS in London, said in a statement.

“By gaining a stronger grasp of what’s driving the loss from typhoons, companies will be able to select risks more confidently and capitalize on opportunities in this rapidly emerging market,” he added.