Home | News & Events

EQECAT Plans Release Of Upgraded German Flood Model -
Fully Probabilistic Model To Be Released In Late June 2006

May 24, 2006

Oakland, California

EQECAT, Inc., the authority on extreme-risk modeling, plans to release in late June an upgraded version of its German flood model, part of its EuroFlood™ platform, enabling the European and international insurance industry to more effectively manage flood exposures there, James Webb, EQECAT product manager, told clients at EQECAT’s 2006 Catastrophe Management Conference this week, in Amsterdam, The Netherlands.

“Flood events that have struck Europe from the 1990s to the present have shown that exposure to flood events has been underestimated, and the insurance market continues to express concern as to the ability to control exposure to large flood events,” said Mr. Webb. “The loss potential is significant: for example, the insured losses from the Elbe River flood event in 2002 amounted to Eur 1.8 billion in Germany alone, and around Eur 2.5 billion across Continental Europe, placing it in the world’s 30 most costly insured losses since 1970 according to Swiss Re,” he said.

“Large flood events can consist of river-based and non-river-based flooding. While EQECAT’s previous German flood model covered river-based flooding only, the new release will cover other types of flooding for all Germany through the use of a new flood modeling methodology. This upgraded model is part of EQECAT’s continuing focus on providing clients with a reliable modeling solution centered on the best available science, engineering, and modeling methodologies,” said Mr. Webb.

New EQECAT Model Is A Fully Probabilistic Tool

The new EQECAT German flood model is a fully probabilistic tool enabling insurers to assess building asset exposure to various flood types in Germany. Furthermore, it is truly countrywide and comprehensive in its flood coverage,” noted Mr. Webb.

Guy Carpenter & Company, Inc. collaborated with EQECAT by providing valuable industry data and validation input, according to Mr. Webb. Guy Carpenter is the leading global risk and reinsurance specialist and a part of Marsh & McLennan Companies, Inc. (NYSE: MMC).

“As part of its EuroFlood platform, EQECAT also plans to release its Austria flood model in late summer 2006. This will cover river-based flooding for the Danube River basin, with subsequent plans to extend coverage countrywide with its non-river-based flood modeling solution. EuroFlood’s underlying pan-precipitation event set makes further European expansion viable,” said Mr. Webb.

Enhancements, Release Of Other Optimized EQECAT Models Planned

EQECAT executives also informed its clients about new and optimized models supported by its WORLDCATenterprise™ platform, including: U.S. Atlantic and Gulf of Mexico Hurricane; Gulf of Mexico Offshore Energy; U.S. Earthquake; European Earthquake; Latin and South American Earthquake; South Korean Typhoon; Japan Earthquake; and U.S. Flood, available on a consulting basis and to be included in WORLDCATenterprise™ in 2007.

For additional information about EQECAT risk models, please visit www.eqecat.com, or call 1-510 –817-3100.