Catastrophe modeler Risk Management Solutions (RMS) hasannounced the launch of a major update of its U.S. and Canadaearthquake models.

According to Newark, Calif.-based RMS, the latest versionsrepresent a significant advancement in the quantification ofseismic risk for the eastern U.S. and Canada, implementingthird-generation modeling capabilities throughout the region andincorporating perspectives on loss amplification gained from thehurricanes of 2004-2005.

“Earthquakes east of the Rockies are less common than in thetectonically active West but can be more severe due to the slowerattenuation of ground motion and less seismically resistantbuilding stock,” said Don Windeler, earthquake practice lead atRMS.

Mr. Windeler said RMS' revised U.S. and Canada Earthquake modelsprovide users with “powerful tools for both underwriting andportfolio management in these regions.”

RMS said it updated the source modeling for these rare events byutilizing the current national seismic hazard maps from the U.S.Geological Survey and the Geological Survey of Canada, as well asnew research into the behavior of key areas driving the risk toinsured portfolios.

Another key advancement involves the extension of RMS' spectralresponse-based vulnerability modeling from the western earthquakeregions to the eastern regions, the company said.

This approach captures the variations in vibration patterns andanalyzes the ways that they interact with buildings of differentheights and materials.

Using the new RMS U.S. Earthquake Model and insured exposure asof 2006, RMS estimated that the states east of the Rockies comprise20 percent of the average annual loss from earthquakes in theUnited States.

A majority of this loss comes from the five states surroundingthe New Madrid seismic zone (Missouri, Illinois, Tennessee,Kentucky and Arkansas). RMS said that a magnitude 7.7 New Madridearthquake, similar to the one that occurred in December of 1811,would result in over $60 billion in insured losses today.