PICC Re is collaborating with catastrophe modelling firm AIR Worldwide to better assess and manage its growing portfolio of catastrophe risk reinsurance business.
After it received CIRC approval early this year to start operations as a stand-alone reinsurance entity, PICC Re began looking for strategic allies that could offer comprehensive assistance with pricing and management of its fast-growing reinsurance book of business.
Based on AIR's long-standing presence in China, as well as its extensive knowledge of the wider Asia-Pacific and global (re)insurance market, PICC Re decided to collaborate with AIR on a long-term basis, says the catastrophe modelling firm in a statement. AIR's advanced models and associated analytical and client support services based in China will be instrumental in assisting in the pricing and management of PICC Re's growing book of business.
AIR's innovative catastrophe models include the AIR Earthquake Model for China which draws on the country's long historical catalog of events and was developed in collaboration with leading local research organisations. The AIR Typhoon Model for China is the first mainstream model to capture the risk from both wind and flood-a critically important feature because standard residential, commercial, and construction-all-risks/erection-all-risks (CAR/EAR) policies generally cover both perils. Additionally, AIR released a full suite of earthquake and typhoon models for Southeast Asia in 2016 and the first-ever combined typhoon and inland flood model for Japan in 2017.
Dr Milan Simic, EVP and head of global business development for Verisk Insurance Solutions and AIR, said: "Our business relationship with PICC has been ongoing for more than a decade and coincides with the opening of AIR's office in Beijing and our major presence and investment in the country. This long-term collaboration will only strengthen our commitment and focus on the fast-evolving and growing insurance and reinsurance market in China and the wider Asia-Pacific region, where companies are increasingly turning to AIR for sophisticated tools and services to assess and manage their catastrophe risk."
AIR Worldwide, a Verisk business, is headquartered in Boston, with additional offices in North America, Europe, and Asia.