In the wake of the devastating Sichuan earthquake, representatives from The China Insurance Regulatory Commission (CIRC), Risk Management Solutions (RMS), and China’s Institute of Engineering Mechanics (IEM) met with more than 100 representatives of the domestic Chinese insurance industry at a recent seminar in Beijing.
The meeting stressed the “importance of data standards in further developing the Chinese catastrophe insurance market,” said RMS. “CIRC has taken the lead in defining and promulgating insurance data standards in China, supported by advice and assistance from RMS and others in developing those standards.
“Insurers were given a comprehensive overview of the importance of systematic and high-resolution information describing the location, construction, and values of exposures, the challenges associated with collecting robust data, and achieving data quality. Dr. Zifa Wang, director of the Chinese Earthquake Administration’s Institute for Engineering Mechanics, also delivered a first-hand account of his and his team’s reconnaissance of the recent Wenchuan earthquake.”
He stressed the importance of high-resolution data standards, indicating that, “after several days of reconnaissance of the areas affected by the Wenchuan Earthquake, our initial observations reinforce our understanding that damage varied widely depending on the class and year of construction, and the specific location of the structures.”
The IEM partnered with RMS to build the leading-edge RMS China Earthquake Model, which was released last year and was used to assess property losses from the Wenchuan earthquake.
“China is exposed to a wide range of natural hazard risks,” explained Hemant Shah, CEO of RMS and a keynote speaker at the seminar. “There is a pivotal role for a strong insurance industry to play in supporting China’s large and growing economy and its rapidly changing society. We applaud the CIRC for recognizing the importance of promoting sound risk management practices, built on a foundation of data quality standards, as the Chinese insurance industry prepares to play a larger role in providing coverage for earthquake and other natural hazard risks. We are privileged to be able to assist in this process.”
Source: Risk Management Solutions – www.rms.com
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