RMS Releases Typhoon Model

In addition to being a major manufacturing hub, Southeastern China is also vulnerable to typhoon events.

According to the China Meteorological Administration (CMA), there have been approximately nine typhoon landfalls on average each year since 1950. Now, Newark, Calif.-based Risk Management Solutions (RMS)  has announced the release of the RMS China Typhoon Model, which covers both mainland China and Hong Kong,

In developing the catastrophe model, RMS collaborated with the National Meteorological Center (NMC), and Branch of CMA, Beijing Normal University (BNU), as well as with Prof. Johnny Chan at City University of Hong Kong., Based on an event set of more than 24,500 storms derived from the CMA’s historical catalogue of storms from 1945 to 2009, RMS says the new model delivers significant advancements in quantifying typhoon-related flood risk and dovetails with its China Earthquake Model, which was released in 2007.

Matthew Grant, global head of client development at RMS, says quantifying the risk of wind and related flood loss is a key concern for insurers as they increase market penetration in China. 

“Although wind and flood damage are driven by the same typhoon events, the new model allows companies to quantify the losses independently,” Grant says. “By gaining a stronger grasp of what’s driving the loss from typhoons, companies will be able to select risks more confidently and capitalize on opportunities in this rapidly emerging market.”