Representatives of Aon Benfield presented examples of major catastrophes and the reinsurance response to them. They also showed an interesting comparison of many catastrophe schemes and pools in the world and discussed practical experiences to the Azerbaijani market. As the main part of the conference Aon Benfield presented their brand new fully probabilistic earthquake model for Azerbaijan. Their model is the only available tool on the market that helps assessing Azerbaijani insurers the adequate catastrophe reinsurance limit. The model also helps in attracting new reinsurance capacity to the Azerbaijani insurance market because many reinsurers only accept a catastrophe risk that has been modeled.
Tomas Novotny, the Chairman of Aon Benfield Central & Eastern Europe, commented: "We are very pleased to present our new Azerbaijan earthquake model to the market. We notice the market's interest as nearly all insurers were present to our conference in Baku. With the increasing insurance penetration in Azerbaijan, our model is a unique tool that helps local insurers protecting their capital from a risk of earthquake."
Alla Migashko, who is responsible for Aon Benfield's operation in Azerbaijan, commented: "Aon Benfiled is already active in treaty reinsurance services in Azerbaijan and our new earthquake model will only enhance our capabilities. All Azerbaijani insurers who decide co-operating with Aon Benfield can now be sure that their catastrophe exposure is quantified using the most advanced quantification tool that is based on similar principles as catastrophe tools used by insurers world-wide."
Vladimir Stejskal, Head of Analytics for Aon Benfield CIS/CEE, commented: "Azerbaijan suffered several damaging earthquakes in the past, last of them struck in 2012 in Zaqatala region. The recently released model that helps companies to quantify their earthquake risk is based on latest scientific research concluded by Azerbaijanis well as international research teams. The model includes more than 16,000 stochastic scenarios, capable of producing damage on the territory of Azerbaijan."
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AON Benfield presented new earthquake model for AZERBAIJAN