Earthquake Risk Transfer in New Zealand

Earthquake Risk Transfer for New Zealand; Short-term earthquake loss
Fig.1 - Hashed circles represent current Earling undercover regions.

The goal of the covering Wellington by Earling preparedness alert network is to see Wellington positioned to become a more resilient region through a comprehensive study of the likelihood of large Wellington earthquakes, the effects of these earthquakes, and their impacts on humans by issuing preparedness alert as soon as risk of a major event increased in the region.
Earthquakes occur frequently in New Zealand as the country is situated in the collision zone between the Indo-Australian and Pacific tectonic plates, part of the Pacific Basin Ring of Fire, where many earthquakes and volcanoes occur.
The largest city within the highest-risk zone is the nation's capital, Wellington, followed by Hastings then Napier. All these cities have experienced severe earthquakes since European settlement. About 14,000 earthquakes occur in and around the country each year, of which between 150 and 200 are big enough to be felt. But Earling was able to issue preparedness alert for some of the latest earthquakes >= M4.0 Richter for the region. Despite the numerous numbers of earthquakes in the region, Earling algorithms that analyze billions of environmental regional data can distinguish earthquake patterns that can be followed by major events from everyday shakes. As a result, Earling issued several preparedness alert days before which some of them.

How EPA Affects Recent Insured Losses

Fig.2 EPA effect on New Zealand Nov 14, 2016, insured losses (SwissRe, 2017).

Fig.3 Mid-term EPA effect in New Zealand Feb 22, 2011 earthquake.

New Zealand short-term expected earthquake loss

Earthquake risks need to be transferred? download the report.

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.

Proposing the best time-window(s) for maximizing insurance coverage before a catastrophe is the Earling solution to transfer earthquake risks. Instead of 365 days insurance, maximize the current coverage only for a few days in each year.

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 period 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.
risk takers
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. Also, between 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.

Requirements

Schedule a meeting to see how Earthquake Preparedness Alerts can transfer your risks.
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