Introduction
CAR’s approach to catastrophe modelling has in large part been developed in co-operation with insurance clients and partners and so reflects the needs of the UK insurance and international reinsurance industries, in terms of the range of perils and territories covered and the focus on loss estimation for buildings, contents and business interruption. CAR’s models use industry-standard geocoding, such as postcode, administrative unit or CRESTA zone, to provide country-specific loss estimates for large residential, commercial and industrial property portfolios.

These outputs can be used by reinsurance companies to price their reinsurance treaties or by primary insurers and their brokers to control their exposure and optimise their reinsurance purchasing. CAR’s models are not black boxes, but are designed to be easily integrated with clients’ existing in-house or third party models, or to be used on a standalone basis.

Peril coverage
CAR has experience of modelling the vulnerability of the built environment to a wide range of natural and man-made perils, including the following:

Catastrophe perils
Earthquake
Volcanic eruption
Tropical and temperate windstorm
Riverine flood, storm surge and tsunami

Routine perils
Subsidence
Burglary
Unexploded Ordnance (UXO)

Territorial coverage (Earthquake)
CAR has developed vulnerability models for 35 countries and territories across 5 continents, covering most of the countries of primary interest to the international insurance and reinsurance industries.