AIR Worldwide's Earthquake Model for Peru Approved by Peruvian Insurance Regulator Superintendencia de Banca y Seguros
BOSTON, Dec. 22, 2015 — Catastrophe modeling firm AIR Worldwide (AIR) today announced that its earthquake model for Peru has been officially approved by Peruvian insurance regulator Superintendencia de Banca y Seguros (SBS) to offer catastrophe modeling services to local insurance companies in the region. AIR Worldwide is a Verisk Analytics (Nasdaq:VRSK) business.
Since 2005, Peruvian insurance companies have been required by the SBS 1305-2005 insurance resolution to contract with an SBS-approved catastrophe modeling company to have their catastrophe exposure quantified. With this new approval, local insurers can work directly with AIR Worldwide and obtain expert modeling services to satisfy regulatory requirements while giving companies a distinct advantage in preparing for the next great earthquake in the region.
Insurers in this region will be able to take advantage of AIR’s suite of earthquake models for South America, specifically Peru. The AIR Earthquake Models for South America are the first catastrophe models for the region to provide an integrated view of loss due to ground shaking, tsunami, and liquefaction. Taking into account the way earthquake potential builds up over time, the AIR models apply a novel “time-dependent” approach to account for the physics of recent earthquake ruptures and possible partial ruptures—yielding the most realistic view of seismic hazard available for Peru, Chile, Colombia, Ecuador, and Venezuela. In addition, the models feature new damage functions for high-value industrial facilities, builder’s risk, and public infrastructure to provide a comprehensive view of risk.
“To protect the strong growth of South America’s insurance markets, regulators such as Superintendencia de Banca y Seguros are largely moving to establish model-based capital requirements more reflective of the actual risk faced by the region,” said Rob Newbold, senior vice president of business development and client services, Americas. “We’re very pleased that AIR’s innovative earthquake model for Peru has been approved by SBS and will now be used to better manage risk and satisfy regulatory requirements that base capital reserves on probabilistic loss estimates.”
About AIR Worldwide
AIR Worldwide (AIR) is the scientific leader and most respected provider of risk modeling software and consulting services. AIR founded the catastrophe modeling industry in 1987 and today models the risk from natural catastrophes and terrorism in more than 90 countries. More than 400 insurance, reinsurance, financial, corporate, and government clients rely on AIR software and services for catastrophe risk management, insurance-linked securities, detailed site-specific wind and seismic engineering analyses, and agricultural risk management. AIR Worldwide, a Verisk Analytics (Nasdaq:VRSK) business, is headquartered in Boston with additional offices in North America, Europe, and Asia. For more information, please visit www.air-worldwide.com.
About Verisk Analytics
Verisk Analytics (Nasdaq:VRSK) is a leading data analytics provider serving customers in insurance, energy, healthcare, financial services, government, and risk management. Using advanced technologies to collect and analyze billions of records, Verisk Analytics draws on vast industry expertise and unique proprietary data sets to provide predictive analytics and decision support solutions in fraud prevention, actuarial science, insurance coverages, fire protection, catastrophe and weather risk, data management, and many other fields. In the United States and around the world, Verisk Analytics helps customers protect people, property, and financial assets. For more information, visit www.verisk.com.