China Reinsurance (Group) Corp. unveiled China Earthquake Catastrophe Model v2.0', the first proprietary commercial earthquake catastrophe model in China.
The model, certified by the Seismological Society of China, can simulate a random event from up to 300 million earthquakes in the country and its neighboring areas in a time span of 5 million years. The model can accurately estimate economic and insured losses for buildings with different construction types, occupancies, heights, construction periods and earthquake fortification levels, according to the company.
The company said it could be used to create a commercial product with detailed catastrophe risk zonings, risk limit control, swift insured losses assessment and reinsurance solutions optimization for insurers.
The model was developed through China Re Catastrophe Risk Management Co., which worked with research data from China Re and support from research institutes including the China Earthquake Administration's Institute of Geophysics and Institute of Engineering Mechanics. The company also received additional funding from the Ministry of Science and Technology.
