Earthquake Risk Transfer for Governments; Short-term Solution
The top 8 high-risk countries with more than $500 million average annual loss are the most vulnerable countries while they are undercover by Earling, to receive Earthquake Preparedness Alerts up to days before a major event.
For longtime natural disasters especially earthquake damages have been compensated through foreign loans and tax, which impact societies with unfortunate effects. But provided solution with new technology, not only helps to decrease effects of the natural disasters through transferring risks, but also it increases resiliency and speed of recovery both for government and residents. More than 40 countries are at risk of major events, which can change anything if a hazard happen. Therefore, it is required to be prepared for major events transfer risks, in a way that it can increase speed of recovery and improve resiliency in a low cost.
Governmental Level Action Plan
There are two regions under risks of serious damages:
1- High seismic regions
2- Low seismic regions that they have already lost their preparation because of the feeling of safety
We help governments to transfer risks of major events that threatening critical infrastructures and residents both in high seismic and low seismic regions.
Transfer Infrastructures Short-term Earthquake Risks
Earling issues Earthquake Preparedness Alert (EPA) up to days in advance. The technology that utilizes in Earling monitors seismic activities and through a constant big data analysis looking for high-risk ground activity patterns. As high-risk patterns detected, Earling issues an EPA for a specific region, which expected to face destruction in different degrees. It is the time that local authorities can transfer risk of a probable major event to the international insurance industry.
(Re)insurances, Governments and Risk Transfer
Through connecting disaster management organizations and the insurance industry, governments can manage major natural risks. The main goal of connecting these two structures is increasing the speed of recovery after a major hazard, alongside defending local insurances facing major losses, which eventually can affect the local financial markets. This goal can only happen through transferring risks to the international (re)insurance companies. Therefore, only least parts of the loss need to be compensated by the local insurers, foreign loans or taxation.
Earling issues an Earthquake Preparedness Alert and defines a high-risk region. This alert delivers through email, followed by a phone call to explain the situation in detail to a specified specialist. Besides, a signal directly sends to the natural disaster management organization Decision Support System, and triggers a predefined process known as Earthquake Preparedness Action Plan. This plan runs a manual or autonomous procedure to purchase or extent coverage of parametric insurance policies for a probable 7 Mercalli (MMI) earthquake to cover predefined critical infrastructures to compensate up to $10 million for each, if the event occurred within 10 days. As a result, it highly increases speed of recovery to compensate destruction through an inexpensive solution.
Affordable Risk Transfer
Once a loss occurs, it is too late to revise an insurance policy. Consequently, the policyholder must be extremely diligent during policy purchase and renewal. Understanding specific insurance requirements, carefully calculating the property and business interruption values, outlining contingency plans, and anticipating the potential losses at each location are all key steps in maximizing future insurance recoveries. In sum, paying close attention to the potential impact of a loss at the insurance procurement stage will help to minimize issues and maximize recovery when a loss does occur.
Now that revising insurance policies once a loss occurs is too late, Earling helps to know the best time to transfer risk through new policies or extending the current coverage for a limited priod of time for example only for 10 days and not for 365 days of year.
Maximizing insurance coverage after a catastrophic loss is difficult for any company but Earling Earthquake Preparedness Alerts assists to do it before a catastrophe occur.
Well Known Risk Takers
Tackle your risks with our solutions to the big players. We propose enterprise companies as well as SMEs and individualizes the best time to purchase a new earthquake policy or extending the current coverage to make it inexpensive.
Currently, Japan, New Zealand, Greece, Turkey, Caribbean, Chile, Ecuador, Taiwan, Romania, Indonesia, California are the regions, which Munich Re accepts their risks. In addition, South Africa, Oklahoma and Utah are subject to further work.
In the regions that Earling issues Earthquake Preparedness Alerts, Japan, New Zealand, Caribbean, Chile, Ecuador, Taiwan, Indonesia and US (California, Utah) are undercover by Swiss Re to take the risks.
How we can help?
In general, Earling has a global seismic monitoring network and specialists that are subject matter experts. Regarding the challenges mentioned above, Earling is been able to deliver support.
- In the pressure on profitability, performance management and key performance indicator settings.
- In the entrance of parametric insurance markets and issuing alternative products, Earling can deliver independent advice by our global resources.
- To keep control on the impact of catastrophic events, Earling can assist in optimizing, validating on Cat and reinsurance programs modelling.