Aon Benfield unveils marine cat model
Aon Benfield, the reinsurance intermediary of Aon, has partnered with catastrophe modelling firm RMS to develop a marine and energy catastrophe model.
The solution, which will be available through RMS’ RiskLink software, will allow insurers to more accurately assess their cargo risks, said the firm.
According to Aon Benfield, the marine and energy insurance industry has often found it difficult to accurately manage exposures due to the non-static nature of the risks.
“To date, existing models have offered no differentiation by commodity type, cargo volume or storage configuration. For example, contrasting cargo types such as rubber tyres and electronics could produce the same level of modelled losses,” it added.
The model is comprised of 85 cargo and specie vulnerability curves based on 18 commodity types, from pharmaceutical and petroleum to cars and fine art, and 12 storage options.
The curves will refine damage estimations for cargo from the perils of US hurricane including surge, US earthquake, European windstorm and Asia typhoon.
It also contains detailed industry exposure databases for major global ports, from Shanghai in China to Houston in the US. The databases take into account cargo classification, volume and time in port, based on industry data and research.
Paul Miller, international head of Aon Benfield’s catastrophe management team, said: “This project will drive industry standards for the modelling marine business and help to revolutionise the way insurers manage their exposures. Aon Benfield has made a financial investment in this innovative new solution because we believe it will genuinely add value to our clients’ business and growth strategies.”
