GEM Foundation is an international public-private partnership committed to the development of open-source hazard and risk assessment software, tools and data.
The collaboration aims to accelerate the ‘data to resilience’ continuum by leveraging Descartes’ parametric insurance solutions and GEM’s collaborative approach to earthquake risk analysis at the global, regional, national and local levels.
Earthquakes, which made up only 8% of all disasters in the last 20 years, are the deadliest of all sudden disaster events. The peril constitutes one of the top causes of economic disruption and of disaster deaths due to building collapse.
Exposure impacts and global ripple effects have been further aggravated in the past decade, where less than one-fifth of all earthquake losses globally were covered by insurance.
The collaboration between GEM and Descartes Underwriting seeks to increase the uptake of earthquake insurance and reduce the protection gap in underserved sectors and regions of the world.
The joint partnership also supports continued development of fair and transparent parametric insurance structures that ultimately reduce basis risk and bolster resilience for policyholders.
GEM’s array of earthquake hazard, exposure and vulnerability models as well as OpenQuake software tools can be used to simulate the seismic behaviour of buildings, lifelines and critical facilities.
In particular, it allows for the assessment of the probability of earthquakes occurring, and the consequent physical damage and economic loss, essential information for implementing a wide range of risk reduction and transfer mechanisms, including parametric insurance.
John Schneider, GEM Secretary General said: “This partnership will provide a framework for both organisations to work together in developing high resolution and scientifically robust earthquake hazard and risk data to meet the needs of public and private sectors for customised and more affordable earthquake insurance products.
“Our combined efforts can also contribute to better earthquake risk understanding worldwide and better earthquake insurance coverage.”
Kevin Dedieu, Co-founder and Head of R&D, Descartes Underwriting added: “Partnering with GEM marks a milestone for both organisations and plays a critical role in providing the next generation of earthquake parametric insurance to clients worldwide.
“Through frictionless and transparent payouts following seismic events, our joint efforts will be instrumental in reducing the earthquake protection gap around the globe.”
Source: Reinsurance News
