September 14, 2015 by Canadian Underwriter
Aon Benfield announced Monday a catastrophe model, for marine and energy insurers, which includes databases on major ports and vulnerability curves for different types of cargo.
London-based Aon plc stated that its reinsurance intermediary unit partnered with Risk Management Solutions (RMS) Inc. to develop the model, which it says will give “insurers the ability to refine coverage and purchase more efficient reinsurance at forthcoming 1 January 2016 renewal.”
“To date, existing models have offered no differentiation by commodity type, cargo volume or storage configuration,” Aon Benfield stated. “For example, contrasting cargo types such as rubber tyres and electronics could produce the same level of modelled losses”
The model developed by Aon Benfield and Newark, Calif.-based RMS includes “some 85 cargo and specie vulnerability curves based on 18 commodity types,” Aon Benfield added. Those types include pharmaceutical, petroleum, cars and fine art. It also includes12 storage options. The vulnerability curves “will refine damage estimations for cargo from the perils of US hurricane including surge, US earthquake, European windstorm and Asia typhoon.”
The model also includes “detailed industry exposure databases for major global ports, from Shanghai in China to Houston,” Aon Benfield stated. “The databases take into account cargo classification, volume and time in port, based on industry data and research.”
Aon’s partnership with RMS “also involves future development plans including offshore energy updates, a new marine data schema and a port interconnectivity model.”
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