Earthquake Risk Transfer for Vietnam
Vietnam is located in the Eurasian Plate close to the Andaman-Sumatra-Myanma plate boundary. Due to the lack of historical records, the establishment of the local site factors and the design seismic response spectrum for major cities in Vietnam was found problematic.
Several major potential seismic sources capable of generating large magnitude earthquakes (M8) have been identified in the region surrounding Hanoi, within a radius of about 250km in recent studies.
Earling preparedness network continuously is monitoring Hanoi and South of Vietnam by distinguishing everyday ground shakes from patterns that may cause an earthquake. As a result, Earling was able to issue preparedness alerts for two of the latest minor earthquakes for the regions two days before the earthquakes happen.
How great is the earthquake risk for Vietnam, given that it sits on active faults? According to Vietnam's Ministry of Natural Resources and Environment, the country as a whole experienced 134 earthquakes in the 20th century, including two that were between M8.0 and M9.0. In recorded history, two earthquakes with estimated magnitudes of M5.0–6.0 are known to have shaken Hanoi in 1278 and 1285, an M6.5 quake occurred in the lower section of the Ma River in 1635, and an M6.0 temblor struck on the Ca River in 1821. In the past 100 years, there have been two major earthquakes of M6.0–7.0 near the province of Dien Bien in 1935 and 1983. Seismic hazard in Vietnam is mainly attributed to the Red River fault system (AIR Worldwide, 2019). As Earling was able to detect even minor earthquakes in the region, hopes arose to issue EPA for major ones.
Vietnam short-term expected earthquake loss
Earthquake risks 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.