New models are likely to reduce earthquake insured loss estimates of 10 to 25% in US
Risk Management Solutions (RMS) has launched its models for North America earthquake risks, covering the US, Alaska, Canada, and Mexico, delivering them to several hundred insurers and reinsurers.
The new models are expected to reduce earthquake insured loss estimates in US of 10 to 25% for the average insurer, with modest changes in loss estimates for commercial business lines and reductions for residential lines.
The new models are expected to help companies differentiate the risk between individual properties, gain insight into the factors affecting uncertainty in model results.
The latest RMS release also includes a suite of new earthquake models for Central and South America to provide an integrated and seamless basis for managing earthquake risk across the entire Americas region.
The company claims that most significant changes in North America will be in California, where modelled loss estimates will reduce by approximately 5 to 15% for most commercial portfolios and 25 to 35% for the majority of residential portfolios.
RMS is a provider of catastrophe risk management products and services.