Guy Carpenter & Company, a risk and reinsurance specialist and a member of Marsh & McLennan Companies, has said that its GC Analytics model development team has introduced a new, fully probabilistic earthquake model for Iceland.
The model, developed in collaboration with the Iceland Catastrophe Fund (Violagatrygging Islands), local scientific experts and experienced international consultants, provides insurers and reinsurers with a reliable, high-quality tool for managing potential exposures in a fully developed insurance market.
The reinsurer said, the new Iceland model is based on Guy Carpenter’s G-CAT modelling platform, widely used in the European market.
The new Iceland earthquake model provides new insight into both of these areas, providing the insurance industry with a better vision of this peril.
Icelandic Catastrophe Fund CEO Hulda Arnadottir said the model allows the firm the opportunity to inform the reinsurance companies about expected total cost immediately after an earthquake event.
Guy Carpenter & Company manaing director Simon Hayes said this new model allows the reinsurer to quantify the seismic risk in a robust and transparent way, providing certainty and clarity to both the ICF and the reinsurance market.