Guy Carpenter, the reinsurance arm of global brokerage Marsh, has announced the launch of its new flood model for Vietnam.
The probabilistic model will provide full national coverage and help re/insurers to assess their exposure to floods – a peril that affects 70% of the population in Vietnam.
The Guy Carpenter Vietnam Flood Model is based on a 10,000-year stochastic catalogue that simulates both fluvial (riverine) and pluvial (rainfall) flooding.
It can produce event-loss tables, occurrence exceedance probability curves and average annual losses at any level of aggregation.
Outputs can be leveraged using Guy Carpenter’s MetaRisk platform to analyze reinsurance structures and for capital modeling.
“The population of Vietnam is particularly exposed to flood,” said Tony Gallagher, CEO of Guy Carpenter’s Asia-Pacific region.
“The Red River delta in the north of the country is very heavily populated and includes extensive industrial areas and the capital city Ha Noi. The Mekong delta in the south, which also has a large population, is very important for agriculture. Additionally, the country is subject to both typhoon and monsoon,” Gallagher explained.
“These factors combine to create a challenging situation and our Vietnam Flood Model is helping to address these risks. Guy Carpenter is dedicated to working with our clients to help them understand and manage their exposure to natural perils.”
The new Vietnam model is the latest in a series of Guy Carpenter models for the region that includes Thailand, Malaysia, Philippines and Indonesia.
