Summary
This document is a technical report that outlines the development of a new probabilistic loss model for earthquake risk assessment in Singapore, created by Aon’s Impact Forecasting team in collaboration with the Global Earthquake Model (GEM). The report details the earthquake risk faced by Singapore, particularly due to its geographical location near the Sumatran subduction zone, which threatens over 30% of the country's building stock. The probabilistic model aims to provide re/insurers with a comprehensive view of earthquake risks, facilitating various applications such as probable maximum loss (PML) assessment, underwriting support, and reinsurance purchase. The report also highlights innovations in modeling, including enhanced data from microtremor studies, liquefaction assessments, and detailed construction classifications. Additionally, it mentions the ELEMENTS platform, which is customizable for clients' risk assessments. The document serves as a resource for understanding the earthquake risk landscape in Singapore and the tools available for effective risk management.
