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Catastrophe Modelling

Assessing property portfolio risk using catastrophe modelling techniques is now an essential component of financial risk management of property insurance organisations

Aon's extensive catastrophe loss modelling services allow you to make more informed decisions regarding retentions, limits, and efficient reinsurance pricing.

Catastrophe loss models produce probabilistic information on property portfolio catastrophe risk. These models use statistical analysis of historical loss information for frequent smaller losses, and sophisticated GIS simulation models for infrequent large losses such as those arising from earthquakes and tropical cyclones.

The output can be used:

• directly to determine suitable reinsurance layers and associated technical (pure risk) rates on line
• as input into actuarial dynamic financial analysis programs for combination with other risks for the design of more sophisticated risk financing and transfer solutions.

As well as using the popular RMS and EQECat models, we have also developed several of our own models for specific regions using advanced software technology to assess the risk from natural hazards such as tropical cyclones, earthquakes, flood, and subsidence.

If you would like to know more about Catastrophe Modelling, please contact Rade Musulin via e-mail: rade.musulin@aon.com.au or telephone: 61 (2) 9650 0428.