EQECAT to Release First Basin-Wide Asia Typhoon Model, US Earthquake Model Update Using Soil-Based Attenuation

Oakland, California

July 15, 2010

Catastrophe risk modeling firm, EQECAT, Inc., announced it will release the first basin-wide Asia typhoon model and an updated US earthquake model using soil-based attenuation on July 31, 2010.

EQECAT’s Asia Typhoon Model is the first catastrophe risk model to provide a holistic view of risk across the entire western Pacific basin (including Japan, China, Taiwan, South Korea, the Philippines, Thailand and Malaysia), known for producing some of the world’s most intense tropical cyclones.

In addition to capturing relevant spatial correlations, as individual typhoon events have the potential to impact multiple countries, the model factors in the direct effects of wind, storm surge, and typhoon rainfall-induced flooding. The model also considers variation in local building practices, design, and building codes.

EQECAT's 2010 US earthquake model USQuake™, implements the 2008 U.S. Geological Survey earthquake model and also features the innovations of soil-based attenuation (SBA) and three-dimensional vulnerability, to accurately capture physical phenomena while eliminating bias.

SBA is a unique formulation of the Next-Generation Attenuation (NGA) relationships, assuming soil as the reference site condition. An SBA approach necessitates far less adjustment for site conditions, thus minimizing uncertainty introduced by soil amplification factors. To capture the increased susceptibility of a building once damaged, USQuake represents vulnerability for wood-framed residential structures using a three-dimensional surface, rather than the conventional two-dimensional curve.

These new models are part of EQECAT's WORLDCATenterprise™ version 3.15 release in July. This updated release also includes:

Updated time-dependent probabilities for earthquakes in Latin America, due to stress redistribution following the M8.8 earthquake in Chile;

Updated Canadian postcodes, a new results comparisons feature and improved analytic performance through the use of 64-bit analysis engines.

"Our clients need robust and transparent modeling that characterizes risk appropriately," said Bill Keogh, senior vice president of EQECAT’s strategic initiatives. "Whether we’re unveiling the first basin-wide Asia typhoon model or updating our earthquake model with critical features, we provide the re/insurance industry with the tools they need to set rational expectations about risk."

EQECAT will host free events to discuss these models on July 27 in Bermuda and July 29 in New York. For more information and to register, visit EQECAT Events.

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EQECAT, Inc. provides state-of-the-art products and services to the global property and casualty insurance, reinsurance and financial markets. EQECAT is the technical leader and innovator of catastrophe risk management models that quantify exposure to a range of natural and man-made catastrophic risks.

Through its modeling software platform, WORLDCATenterprise, EQECAT enables clients to quantify and manage the potential financial impact of natural hazards. WORLDCATenterprise includes 181 natural hazard software models for 95 countries spanning six continents. These models are based upon innovative applications of the latest science, engineering expertise, claims and exposure data and advanced mathematics.

EQECAT, a subsidiary of ABSG Consulting Inc., was founded in 1994 and is headquartered in Oakland, California.

For more information, contact: pr@eqecat.com