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American Association of Insurance Services Using EQECAT's Earthquake-Risk Analysis in Rate Filings Across U.S.
June 7, 2007
Oakland, California
EQECAT, Inc., a subsidiary of ABSG Consulting Inc. (“ABS Consulting”), and the leading authority on extreme-risk modeling, said today that the American Association of Insurance Services (“AAIS”) is using the firm’s earthquake-risk analysis in rate filings across the United States.
EQECAT’s detailed analysis involved the use of EQESTOCK™, its nationwide proprietary database, together with its knowledge of the geographic distribution of earthquake risk. EQESTOCK portfolios provide a statistical estimate of residential, commercial, and industrial in-force property insurance exposures based upon typical wind and earthquake insurance policies.
The results of the analysis are being used in nationwide rate filings based upon EQECAT’s USQuake™ model. AAIS, a Wheaton, Illinois-based national insurance advisory organization, files rating information on behalf of its members as one of its primary services.
EQECAT’s USQuake model is part of the WORLDCATenterprise™ platform, which is used to assess and manage potential damage and loss from earthquakes, wind, flood, wildfire and terrorism, among other perils.
The USQuake model is consistent with the latest information regarding seismicity, geology and earthquake vulnerability in the U.S. It is used by the California Earthquake Authority (CEA) to assist in setting earthquake insurance rates. The CEA, the world’s largest mono-line earthquake risk insurance company, was established by the California legislature to provide earthquake insurance to homeowners and renters in the state. The EQECAT model is the only earthquake risk model accepted under the "state-of-the-art" requirement in the CEA enabling legislation, EQECAT said.
“EQECAT’s state-of-the-art technology, coupled with its experienced team of engineers and consultants, enables us to better understand the potential risks that impact our members’ books of business,” said Paul Baiocchi, President of AAIS.
“It is our overall goal to make sure our members have access to the very best, cost-effective solutions geared toward their specific needs,” he said. “Having access to quality technology and an experienced team of consultants, such as that provided by EQECAT, is central to the development and success of the programs we offer to our members.”
“We are especially pleased that AAIS, as a highly regarded insurance advisory organization, selected EQECAT to provide this important risk-analysis using our USQuake model, which is based upon the latest generally accepted science, engineering expertise, and advanced mathematics,” said Rick Clinton, President. “We are dedicated to offering the best scientifically based resources, and providing authoritative guidance on the issues facing the market.”
About the American Association of Insurance Services (AAIS)
AAIS is a national advisory organization and statistical agent that develops policy forms and manuals used by more than 600 property/casualty companies throughout the United States. For additional information, go to www.aaisonline.com.
EQECAT Serves Global Clients Through Extensive WORLDCATenterprise™
Through its user-friendly, extreme-risk modeling software, WORLDCATenterprise™, EQECAT enables clients to assess and manage potential damage and loss from wind, earthquakes, flood, wildfire, and terrorism, among other perils. WORLDCATenterprise™ includes 177 natural hazard software models for 89 countries spanning six continents.
EQECAT and its parent, ABSG Consulting Inc. (“ABS Consulting”), serve the global property and casualty insurance industry, major multinational corporations and financial institutions. EQECAT is known as the technical leader and innovator in the development of analysis tools and methodologies to quantify insurers’ and major corporations’ exposure to natural and man-made catastrophic risk.
EQECAT was founded in 1994 and is headquartered in Oakland, California. For additional information, please log on to www.absconsulting.com, or www.EQECAT.com.
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