AIR Worldwide's earthquake model for Colombia gets green light
Catastrophe modelling firm AIR Worldwide's earthquake model for Colombia has been approved by the country's insurance regulator, the Superintendencia Financiera de Colombia, for use by domestic insurance companies in managing their earthquake risk.
The AIR model in Colombia will enable insures to better manage risk with a comprehensive view, while satisfying the regulatory requirements that base capital reserves on probabilistic loss estimates.
"With this new approval, local insurers can work directly with AIR Worldwide and obtain expert modelling services and direct access to the models to satisfy regulatory requirements while giving companies a distinct advantage in preparing for the next earthquake in the region," said Rob Newbold, executive vice president at AIR Worldwide.
"To continue to protect the strong growth of South America's insurance markets, regulators are largely moving to establish model-based capital requirements more reflective of the actual risk faced by the region.
Newbold added: "AIR's innovative approach to modelling earthquake risk in South America has now been approved by two regional regulators, having been first approved by the Peruvian insurance regulator, Superintendencia de Banca y Seguros (SBS), in December of 2015.
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