Boston-based AIR Worldwide Corporation announced that China’s PICC Property and Casualty Company Limited has licensed CLASIC/2™ and CATRADER®, AIR’s catastrophe risk management systems, to manage the Company’s earthquake risk to residential, commercial, and industrial exposures.
“As the leading Chinese insurer, PICC P&C pays considerable attention to catastrophe risk,” stated Zhang Qing, General Manager of the Reinsurance Department at PICC. “AIR’s catastrophe risk management systems will enable PICC to continuously monitor our exposure and efficiently manage our reinsurance needs. AIR’s catastrophe risk management systems also provide valuable information for pricing risks and improving portfolio profitability without increasing catastrophe risk.”
The bulletin noted: “PICC will assess and manage earthquake risk using AIR’s China Earthquake Model. Loss estimates derived from AIR’s China Earthquake Model are based on a highly detailed hazard database incorporating China’s extensive historical earthquake experience and the most current scientific findings of earthquake risk in the country. The model estimates potential damage to most of China’s widely varied building inventory, including masonry, reinforced concrete, and steel frame buildings. It also incorporates an objective, engineering-based approach to assess the time-dependent vulnerability of buildings under construction, from excavation to project completion.
“PICC is a leader in the China insurance market, whose property portfolio represents 50 percent of the market,” indicated Kenneth Zou, AIR’s chief representative in China. “We look forward to assisting PICC in their implementation of an effective catastrophe risk management strategy.”
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