Earthquake Risk Transfer for South Africa
While major earthquakes are uncommon in South Africa in general, the earthquake occurred in a mining belt where earthquakes are relatively common. The CGS had described a 2005 earthquake with a magnitude of 5.3 on the Richter scale in the same area as Orkney as the largest mining-related earthquake in South Africa. The earthquake occurred on 9 March 2005 at DRDGOLD's Hartebeesfontein mine in Stilfontein, killing miners underground and resulting in the closure of the mine An investigation by the mining regulator following the incident found that it was caused by mining and further seismic events would occur while mining continued. The report on the investigation recommended improvements in seismic monitoring among other things, and some of the recommendations had been implemented before the 2014 earthquake. The USGS recorded a 4.9 moment magnitude earthquake on 15 June 2014 in the same area, which earth sciences believe may have been a foreshock.
South Africa earthquake loss expected; Short-term
South Africa earthquake risk that 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.
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.