TOKIO Millennium is working on its own model for assessing hail risk

23 June 2015 — Alexandru CIUNCAN
TOKIO Millennium Re is currently working on its own model for assessing hail risk for motor insurance, considering the diurnal cycle of traffic, as discussed during "IIF - Property Insurance in a Stormy Era" conference in Munich.

"As there is no hail model from RMS, AIR of from other providers, we have decided to create a stochastic hail event set for the entire Europe for Property and Motor", says Peter GEISSBUEHLER, Senior Vice President and Head of Nat Cat, TOKIO Millennium Re, Switzerland. HAMLET (Hail Model for Europe by Tokio), the name of the project, will be covering in an initial phase only Germany but later on some other European countries will be included.

In July and August 2013, three giant hailstorms in Germany caused an industry loss of up to EUR 3 billion, the largest hail event ever observed in the industry since the hailstorm in Munich in 1984. It demonstrated that hail risk is underestimated in its severity and frequency. Over the last decades, insurance companies have reported a significant trend in losses due to severe hail damage to properties and motor vehicles. This trend coincides with recent observations from the scientific community showing a significant increase in hailstorms in Europe.

Originally established in Bermuda in 2000, TOKIO Millenium Re is a subsidiary of the TOKIO Marine & Nichido Fire Insurance, Japan's oldest and one of its largest non-life insurance companies which is primarily engaged in property and casualty reinsurance and market solutions products. TOKIO Millenium Re is rated A++ (Superior) by A.M. Best and AA- (Very Strong) by Standard & Poor's.

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