Aon Benfield’s Impact Forecasting team has produced a new catastrophe model for Iceland, to estimate the financial impact of earthquakes.
The new model was developed after Iceland was named the most earthquake-prone region in Northwest Europe by Aon, with the peril accounting for 83 percent of catastrophe losses in the country over the last 20 years.
Aon teamed up with Iceland Catastrophe Insurance (ICI) to design a model that would provide an up-to-date view of the risk and reduce the uncertainty in its loss estimates.
The model is also implemented in Impact Forecasting’s Elements catastrophe modelling platform to help estimate potential earthquake losses.
Hulda Ragnheiður Árnadóttir, CEO of ICI, said: “The ICI has increasingly emphasised the importance of assessing insurance risk based on recent local scientific advancements.”
“The new model has enabled us to further grasp the extent of the risk in relation to our own portfolio, while delivering enhanced information to reinsurers for use at the 2017 renewal.”
