A new NatCatDAX initiative in Singapore aims to improve data quality for Asia’s natural catastrophe risk and its re/insurance.
Reinsurance broker Aon-Benfield, insurer Mitsui Sumitomo, reinsurer RenaissanceRe, catastrophe risk modeller Risk Management Solutions (RMS) and catastrophe bond data firm Perils have partnered for the project.
NatCatDAX will initially focus its efforts on Indonesia, the Philippines, Taiwan and Thailand, but will expand to cover other countries in Asia.
The data sharing alliance is led by the Institute of Catastrophe Risk Management at Nanyang Technological University in Singapore, with support from local regulator the Monetary Authority of Singapore.
Insurance and economic exposure and loss databases are planned to provide data for insured and uninsured assets and losses, which a press release from Perils said would address the “current protection gap” for nat cat protection in Asia and in turn foster “new risk transfer solutions to cushion the financial burden of natural catastrophe events in the region”.
Luzi Hitz, CEO of Perils, said: "In the past seven years, Perils insurance industry data have facilitated more than $12bn of risk capacity in the form of insurance linked securities and private reinsurance transactions.
“Perils is therefore living proof that more data enhances our understanding of natural catastrophes which in turn leads to better risk assessment and new risk transfer solutions.
“We hope that our involvement in NatCatDAX will trigger a similar development in Asia, and we will rely upon the support of the insurance industry to help NatCatDAX achieve its mission,” he added.