HONG KONG, Aug 23, 2019 - (ACN Newswire) - China Reinsurance Group (China Re) launched the 'China Earthquake Catastrophe
Model v2.0', the country's first proprietary commercial earthquake catastrophe model certified by the Seismological
Society of China, at the 3rd China Re Catastrophe Risk and Insurance Summit held here on Thursday, August 22. This was a
milestone that will fundamentally change China's long dependence on foreign earthquake catastrophe models, and
systematically improve the capacity of China's earthquake catastrophe risk quantitative management.
Nearly one hundred experts from the Ministry of Science and Technology, the Emergency Management Department,
seismological science research institutes and the insurance industry had convened for the summit, and to witness the
unveiling of 'China Earthquake Catastrophe Model v2.0'. China Re has held the Catastrophe Risk and Insurance Summit for
three consecutive years, since establishing the China Reinsurance Catastrophe Research Center in 2017.
'China Earthquake Catastrophe Model v2.0' is a concerted milestone achievement by the government, academia and
enterprise. To develop the model, China Re initiated the China Re Catastrophe Risk Management Company, the country's
first fin-tech corporation for catastrophe risk control, and brought in a professional model development team with
overseas working experience.
China Re integrated its scientific research and data resources with the support of professional research institutes
including the Institute of Geophysics, and Institute of Engineering Mechanics of the China Earthquake Administration.
China Re applied for the State Key Research Project, 'Earthquake Insurance Loss Assessment Model and Applications', and
received additional funds from the Ministry of Science and Technology. The research grants ensured that the model was
completed within two years.
Currently, the model has been recognized by the Seismological Society of China as a first-class international model. The
model platform has also been tested and certified by authoritative software evaluation agencies, with complete
technological verification certificates, user documents, technological documents, and training and operational service
systems. The model is thus fully-qualified and ready for commercial use.
The model can simulate a random event set of up to 300 million earthquakes in China and its neighboring areas, in a time
span of 5 million years. It is the first model that can accurately estimate economic and insured losses for tens of
thousands of buildings with different construction types, occupancies, heights, construction periods, and earthquake
fortification levels, with fast simulation processes delivering accurate data for China. Its broad application scenarios
means the model can provide insurers a commercial product with detailed catastrophe risk zonings, risk limit control,
swift assessment of insured losses, and optimization of reinsurance solutions.
Furthermore, the model helps government agencies and official units to quickly assess economic losses in earthquake
aftermaths and assists government planning for earthquake prevention and relief. Its easy adaptation will offer
customized solutions and an online-offline integration, allowing users to use this model both online or install it in
their own system. The wide adaptation of this model will assist China's insurance sector to further reduce foreign model
dependency, improve self-independent science and technology strengths, cut cost and be more accurate in earthquake loss
assessments.
As the "National Team" of China's reinsurance industry, China Re has actively responded to the nation's call and the
development requirements of the insurance industry. The independently developed earthquake catastrophe model marks a
major scientific breakthrough in China's catastrophe risk control sector. The model actively promotes the commercial use
of professional and technological innovation in the catastrophe risk control area, and sets a milestone in China's
earthquake insurance development.
Yuan Linjiang, Chairman of China Re, said, "The Central Committee of the CPC specifically pointed out that we must build
an effective and scientific natural disaster prevention and control system. Reinsurance is an indispensable part in the
nation's catastrophe risk control system building process. The release of 'China's Earthquake Catastrophe Model v2.0'
injects new momentum into the insurance industry's deep involvement in earthquake disaster prevention and mitigation. It
is a milestone, filling China's blank of a proprietary and controllable earthquake catastrophe model that fits the
nations needs.
"Additionally, it is a fruitful result in implementing China Re's strategies of "One Core, Three Breakthroughs and Five
Leaps" and "Platform-Orientation, Technology Application and Globalization". Together with its fellow partners, China Re
will carry on building this professional, innovative, open and shared catastrophe platform for the insurance industry,
supporting technological breakthrough and the application of catastrophe risk control modeling, making due contributions
to the building of China's modern risk control system."
He Chunlei, Vice Chairman and President of China Re, hosted the summit, and commented that the launch of China Re's
earthquake catastrophe model marks a new beginning of the company's contribution to China's modern risk management.
China Re will leverage China Re Catastrophe Risk Management Company as an innovative platform to integrate resources
from all parties, and accelerate the establishment of China's catastrophe insurance industry infrastructure.