New cargo modelling on accumulation

RMS has published a new report examining the current state of cargo modelling in the marine market and providing a new cargo-specific approach to the assessment of vulnerability and port accumulation. The report “Marine Cargo Catastrophe Modeling: Navigating the Challenges, Charting the Opportunities” precedes the May 2016 launch of the RMS Marine Cargo Model, the industry’s first marine cargo and specie risk model. In the last four years, records have been broken twice for total insured marine losses – first for Hurricane Sandy in 2012 at US$3 billion, then the explosions at Tianjin last year, reported to be $5billion to $6 billion. Until now (re)insurers have lacked the tools to estimate their port accumulations, evaluate cargo protection measures, and measure the performance of cargo exposed to a catastrophic event such as a hurricane, storm surge, or earthquake.