Aon broadens flood models to Malaysia and JakartaReprints
Aon Benfield, the reinsurance division of Aon P.L.C., has developed catastrophe models for Malaysia and Jakarta floods. The models are being launched this week at the Singapore International Reinsurance Conference.
The catastrophe models were developed to help insurers and reinsurers underwrite and manage their exposures in Asia, Aon Benfield said in a Tuesday statement.
According to Aon Benfield, the average frequency of a major flood in Malaysia is once every three years, and because of the increase in exposure concentrations and evolving urban environments, these floods are not strong indicators of future loss potential. The data used in the new model comes from field studies that “indicated large accumulations from high value commercial and industrial properties in the flood plains.”
Additionally, both models can analyze portfolios with residential, commercial and industrial estate lines of business. The models are available on Aon’s Elementsloss calculation platform, according to the statement.
“Ever since the Thai floods of 2011, the re/insurance industry has been keen to grasp the implications of this peril throughout the Asia region. Now, coupled with other factors such as increased urbanization and detariffication in Malaysia, we have addressed these challenges with models that can fulfill regulatory and rating agency requirements — in addition to the more traditional use of driving accurate reinsurance purchase,” Adityam Krovvidi, Aon Benfield’s head of impact forecasting in Asia said in the statement.