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Daily Insurance Industry News
Thursday 18th of January 2018
April 7, 2011

Aon Benfield launches Cypriot earthquake model

by Gill Montia

Story link: Aon Benfield launches Cypriot earthquake model

Aon Benfield launches Cypriot earthquake model

Aon Benfield has launched an earthquake model for Cyprus developed by Impact Forecasting, the reinsurance broker’s catastrophe modelling unit.

Earthquakes in Cyprus are common as the island is close to the boundary between the Anatolian and African plates; notable events include the February 1995 earthquake afflicting Paphos and Nicosia and the October 1996 event causing losses in Paphos and Limassol.

According to Aon, local insurance companies have been lobbying for an up to date model and the new offering has been developed in collaboration with Professor Carydis and his team at the National Technical University of Athens.

The research characterised the following components of the model:

Potential seismic sources in Cyprus that constitute an event set of over 10,000 earthquake scenarios, both onshore and offshore.

The vulnerability of Cypriot building stock by various engineering metrics including construction class, age and seismic zone, as well as geographical distribution.

In addition, the model can provide insurers with quantitative loss estimates even when the input exposure data is given at an aggregate or CRESTA zone level, and construction information is incomplete.

Aon Benfield deputy chief executive officer, Alexander Turner, says: “Cypriot insurers are increasingly turning to catastrophe models to help determine their reinsurance purchases.”

He adds: “We have been able to support this trend by providing the new earthquake model, in addition to demonstrating the value of other analytical technology such as our dynamic financial analysis tools.”

 

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