NU Online News Service, March 23, 11:09 a.m. EDT
Risk Management Solutions and Asia Capital Reinsurance Group announced an agreement for RMS to work with ACR to develop catastrophe risk models for the Asian market.
RMS, based in Newark Calif., said through a non-exclusive agreement, Singapore-headquartered ACR has licensed RMS' full suite of Asian models.
RMS said it will also pursue, under the agreement, a research and development agenda prioritized to enable ACR to deliver innovative re/insurance solutions tailored to the unique needs of the Asian market.
The scope of the collaboration, it was explained, includes enhanced and expanded coverage for natural hazard models across the region, emerging issues of food security and infectious diseases, as well as activation of micro insurance solutions on viable and sustainable principles.
"This exciting agreement is an opportunity to progress toward a deeper understanding of risks in Asia, and help address the gaps where greater risk insight is needed by the industry," said John Tan, chief executive of ACR.
Mr. Tan added that, "Through this collaboration we will be making significant strides towards providing clients with a true view of the technical risk based on their exposures in Asian markets. At the same time, we will enhance our risk interpretation and analytical capabilities, ensuring we are at the forefront of the industry in providing value to clients."
RMS noted that the 2008 earthquake in Wenchuan, China, together with the typhoons and earthquakes that have hit the Western Pacific region in recent years highlight the scope of natural hazards in Asia.
The modeling firm also mentioned that globalization is bringing new and emerging risks to Asia as a result of changing lifestyles, travelling patterns and economic activities.
Additionally, RMS said the economic development coupled with climate change is putting pressure on arable land for food and clean water sources, impacting on the risk landscape.
"Asia's insurance industry is set to play a major role on the global stage and this demands a deeper understanding of new and emerging catastrophe risks," said Hemant Shah, president and chief executive officer of RMS.
"ACR is an innovative market leader with in-depth knowledge of the Asian insurance market, and RMS is committed to providing solutions that continue to extend the bounds of risk management best practice. We look forward to this exciting cooperation," Mr. Shah concluded.
In addition to the United States, RMS serves clients from offices in Bermuda, the U.K., France, Switzerland, India, China, and Japan. It is online at www.rms.com.
ACR describes itself as the world's first independent reinsurance company with an exclusive focus on serving clients in the pan-Asia region. ACR has a branch in Hong Kong and offices in Taiwan and India and handles large and specialist risks.
Its associated companies include Asia Capital Reinsurance Malaysia, ACR ReTakaful MEA and ACR ReTakaful SEA. More information is online at www.asiacapitalre.com.
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