New Zealand’s Earthquake Commission (EQC) expects its new loss modelling capability will boost its ability to plan for future natural disasters and respond to them when they occur.
Along with two of the country’s other research institutions, EQC is now using GNS Science and NIWA’s risk tool to model damage and losses from earthquakes.
The new modelling software will allow the organisation to channel its research and insurance data into its risk modelling, creating an increasingly comprehensive picture following an event, as well as improving EQC’s ability to model and plan for future disasters.
EQC’s Head of Risk Modelling Andrea Gluyas says that as the relevant science develops, the new tool we will be able to model losses from other perils such as tsunami and volcanoes in the future.
“Loss modelling is a critical part of EQC’s role in helping reduce the impact of natural disasters,” Gluyas said.
“This new tool will allow us to incorporate the latest science to understand the impact of natural hazards on New Zealand homes, helping us to better plan for future events as well as providing critical information immediately after an event to help us best prioritise assistance to the most affected communities and scale our response accordingly.”
The new loss modelling tool is being used for reinsurance modelling to start, with scenario planning being incorporated in the coming year. It replaces the Minerva platform that EQC has been using for 20 years.
RiskScape has been developed as a joint venture between GNS Science and NIWA, with EQC making a significant contribution over the last three years.
“Having all three organisations working together means we are developing top-class New Zealand specific natural hazard risk modelling and science,” Gluyas adds.
Fraser Gardiner, Chief Financial Officer at EQC, also explained that the new modelling would also help maintain the high level of trust EQC has developed within the international reinsurance industry.
“This new tool will continue to give reinsurers confidence in our ability to provide an accurate view of our risk profile through the addition of new science and understanding of the other perils covered by EQC,” he said. “It’s providing a New Zealand-specific view on our risks, based on world-class modelling, research and data.”