Aon has introduced a fully probabilistic flood catastrophe model for Thailand, aimed to assist global insurers in better understanding risk management exposures.
The new model features improved key drivers for understanding flood risk in Thailand, ability to make more informed decisions on reinsurance purchase and pricing as well as identification of the capital amount needed to satisfy regulatory and rating agency requirements.
In addition to providing modeling for residential, commercial and industrial lines of business, the new model features damage functions based on 2011 claims data and international experience.
Aon Benfield Asia Pacific chief executive officer Malcolm Steingold said, "As we move towards the next reinsurance renewals, the new model – based on numerous site inspections – will help us to better assess the vulnerability of risk concentrations to natural perils and to address the issue of unmodelled perils."
Developed by Aon Benfield in partnership with Impact Forecasting, the model comprises the latter’s loss calculation platform to enable easy customisation of catastrophe models for insurers and provide gives access to 30 catastrophe models spanning over 20 territories and six key perils.