GPS World

Tag: natural catastrophe

  • CoreLogic Expands Natural Catastrophe Risk Management Solution

    CoreLogic, a residential property information, analytics and data-enabled services provider, today released an expanded version of its natural catastrophe risk management solution, which features a new comprehensive probabilistic flood model that analyzes the potential damage and financial impact at the property-level from flood events in the continental United States.

    This probabilistic flood model is unique to the industry because its riverine and flash flood risk components provide better risk estimation for areas outside the 100-year flood zones–areas responsible for 20 percent of historic flood losses but which represent only 1 percent of the flood insurance policies in force.

    Measuring both severity and frequency of flood events, the probabilistic flood model loss calculations offer property, contents and business interruption analysis. The model also incorporates historical flood event footprints from the last 50 years and the accompanying property damage.

    Additionally, the model incorporates detailed user-provided building information to derive vulnerability assessments driven by both water depth and water velocity. These building characteristics include construction type, occupancy, floor elevation, basements and elevated building configurations. The new CoreLogic flood model provides insurers with an unprecedented tool to more accurately underwrite the risk associated with this complex peril, especially the proprietary flash flood component.

    With granular 10-meter elevation data, the catastrophe risk management solution incorporates the Digital Flood Insurance Rate Maps (DFIRMs) provided by the Federal Emergency Management Association (FEMA). It uses more than 80 different occupancy classes covering topography, land-use, stream coverage and inundation. In order to more accurately measure a property’s flood risk, more than 50 data layers ranging from elevation, hydrologic and catchment information are included, as well as data for over 6 million miles of streams and 20,000 stream flow gauges.

    “The release of the U.S. Inland Flood Model means insurers can now use this advanced probabilistic tool to help them determine a property’s potential for flood damage,” said Tom Larsen, CoreLogic product architect. “The model’s unique ability to provide granularity down to the property level will offer insurers a complete view of flood risk, including contents and business interruption, for all types of properties.”

    The catastrophe risk management solution contains parcel-level geocoding through PxPoint from CoreLogic, which can convert physical addresses or locations into precise geographic coordinates for over 142 million parcel boundaries. A new visualization feature identifies details in the data as well as exceptions via easy-to-use charts and graphics. Other new components include updates to three risk assessment models including Italy Earthquake, the North Atlantic Hurricane Risk and U.S. Offshore Energy.

    Highlights include:

    • The Italy Earthquake Model now incorporates an updated seismic source model based on the Seismic Hazard Harmonization in Europe (SHARE) to provide a current and more accurate view of seismic hazard in Italy. Increased maximum magnitudes, an updated magnitude-frequency distribution and a new ground motion model are part of the enhancements.
    • The North Atlantic Hurricane Risk Model update includes a high-resolution storm surge model and enhanced hazard risk assessment to more accurately capture the damage from storm surge as the surge attenuates inland (outside of the high velocity zones). It uses storm intensities from historical events based on the Atlantic hurricane reanalysis project by the National Oceanic and Atmospheric Administration (NOAA). Additionally, the North Atlantic Hurricane Risk Model includes a full set of default secondary structural modifiers by vintage and location for all hurricane states, which are based on the International Building Code as well as state-specific building codes to provide refined results. RQE 16 also includes a model version which was certified by the Florida Commission Hurricane for Loss Projection Methodology in June 2015.
    • The U.S. Offshore Energy Model features a distinctive wave model component and unique financial model which produces an improved estimate of potential damage to physical assets in U.S. territorial waters within the Gulf of Mexico. A network analysis is also built into the model to produce a better estimate of the lost production from oil wells.

    “All of these enhancements will help insurers understand hazard risk in a more granular and comprehensive way, and this precision in risk modeling will help the industry overall fine-tune its underwriting, claims and reinsurance efforts,” Larsen said.

  • CoreLogic Releases Natural Catastrophe Platform and Risk Models

    corelogic-australia-earthquake
    Historical earthquakes across Australia.

    CoreLogic, a  global property information, analytics and data-enabled services provider, has released a new version of its EQECAT natural catastrophe modeling platform, which contains three new proprietary risk models that quantify and analyze the potential financial impact of catastrophic natural hazards in peak exposure regions across the globe. The expansion of natural catastrophe risk analysis includes modeling for earthquake and tsunami events in Japan and earthquake events in Singapore, as well as for European windstorms, including a North European offshore wind farm risk model.

    EQECAT, which was acquired by CoreLogic in December 2013, first introduced its natural catastrophe risk modeling platform RQE (Risk Quantification & Engineering) in January 2013 that includes more than 180 natural hazard models for 96 countries and territories spanning six continents. Loss calculations simulate 300,000 years of losses to provide comprehensive and highly credible estimates of risk exposure to earthquakes, tropical cyclones and windstorms, severe convective storms, brushfires, winter storms and flooding.

    “This release of the RQE v15.0 platform not only advances the innovative and industry-leading science that is the hallmark of EQECAT risk models, but also demonstrates the commitment CoreLogic has to delivering timely enhancements and new platform features to our clients,” said Paul Little, head of EQECAT.

    The additional catastrophe risk modeling delivered through the new RQE v15.0 platform includes:

    • The European Windstorm Model, which introduces the ability to analyze offshore wind farm turbines that are rapidly expanding in Europe as a result of major investments in alternative energy. The “Eurowind” model extends over the North Sea, Irish Sea, Baltic Sea and Atlantic Ocean, and gives insight into loss caused by wind storms. In addition, the windstorm model includes two views of frequencies — the empirical model based on the historical record from 1960 to present, and the analytic model with a continuous 1200-year simulation of an Earth System Model (ESM) driven by climatic background conditions to characterize the frequency and severity of European windstorms. The European Windstorm Model also now incorporates Spain and Portugal, extending the existing coverage to 24 countries and provides analysis of extratropical cyclone risk. Expanded capabilities also include access to Global Climate Model research used to help determine the frequency and scale of European windstorms.
    • The Japan Earthquake Model, which provides the most current view of earthquake risk across the country based on December 2013 research released by the Japanese government and national research organizations. This model accounts for previously un-modeled very large magnitude events with updated seismic source zones and increased maximum magnitudes. New damage and loss data from the 2011 Great East Japan (Tōhoku-oki) earthquake prompted a complete review and update to model vulnerability functions, including major changes to performance -based effects of deep building foundations and base isolation. For the first time, CoreLogic introduces tsunami as a sub-peril, offering both a fully probabilistic and a scenario-based tsunami risk model, using 30-meter digital elevation maps for more granular and precise risk evaluations for a complete view of earthquake and tsunami risk across Japan.
    • The Singapore Earthquake Model, which accounts for the increased probability of a near-term large-magnitude earthquake on the Sunda (Java) megathrust fault. This fault zone is one of the most active on Earth and largely influences earthquake risk in Singapore. This new model accounts for seismic risk factors specific to Singapore, such as soft soils that amplify intermediate-period ground motions from distant large earthquakes and the existence of reinforced concrete high-rise buildings.

    “Combining more than 30 years of collected data from CoreLogic with EQECAT natural catastrophe models allows us to deliver a more comprehensive, highly credible analysis of key drivers of hazard risk at various levels of exposure around the globe, from across regional borders to individual site levels,” said Mahmoud Khater, chief science officer for catastrophe modeling.

    The updated EQECAT RQE v15.0 platform also offers significant enhancements to user interface, reporting options and workflow management tools. Enhancements include a more comprehensive view of exposure data with expanded filter options, event-specific hazard intensity reports for individual locations, and analysis of annual exceedance probability refined by region and sub-peril to show drivers of portfolio losses, among other capabilities.