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Daily Insurance Industry News
Thursday 16th of August 2018
April 13, 2011

Aon Benfield launches German storm-surge model

by Gill Montia

Story link: Aon Benfield launches German storm-surge model

Aon Benfield launches German storm-surge model

Aon Benfield has launched the first storm-surge model for Germany in a move that should help re/insurers quantify risk in an underdeveloped line of cover.

According to the intermediary, storm surge has generally not been included in German buildings policies, due to difficulties in accurately assessing the peril.

However, the new model analyses such variables as storm frequency, wind speed, tidal movements, wave height, and the efficacy of coastal defence systems.

It should therefore enable firms to define their individual and aggregated exposures across the €300 billion of structures at risk.

Aon Benfield chief executive officer Germany, Jan-Oliver Thofern, explains: “By generating thousands of stochastic scenarios, this new storm surge model quantifies re/insurers’ exposures and potential claims burden, making the potential danger highly transparent.”

He adds: “The model will help creating new opportunities to drive the market, providing re/insurance protection for local business and residents who may have been at risk from a storm surge event.”

Last week, Aon Benfield launched an earthquake model for Cyprus in response to demands from local insurers.

 

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