Sompo Japan Nipponkoa Insurance, Inc (SJNKI), and Sompo Canopius AG are to launch a stochastic natural catastrophe risk model for North-West Australia Offshore Installations, according to an announcement.
The new risk model is to be launched today at the APPEA Conference and Exhibition 2017 (APPEA 2017), a gas and oil industry event that takes place in Australia.
Sompo Risk Management & Health Care Inc., which provides analytics and model development for the Sompo group of companies, developed the new model, which has been described as the first model for offshore North-West Australia to provide quantitative assessment of cyclone risk.
“The prevalence of frequent and extreme cyclone activity in the region clearly demonstrates the threat to property located within the North West Shelf area of Australian territorial waters. Undoubtedly, the loss potential that powerful storm systems pose to operators and their partners in the offshore exploration and production industry is increasing with the ongoing expansion of infrastructure in the North West Shelf,” said Tatsuhiko Okubo, energy section manager at SJNKI.
The new model utilises a Hazard Module, which assesses wind and wave levels. A Vulnerability Module, which establishes the potential amount of damage a storm could cause. And a Financial Module, which looks at the losses exploration, and production property could incur and applies relevant insurance protection.
Steve Warren, Sompo Canopius group head of energy & engineering, commented; “We are proud to have been part of the development of the first stochastic model of the region and to be talking about it at APPEA 2017. This model will help us in supporting our brokers and clients to understand and manage their risks more effectively, as the region’s energy industry continues its ongoing rapid development.”
