AIR Extends ACM Earthquake Technology to Japan.

Business/Technology Editors

BOSTON--(BUSINESS WIRE)--Jan. 31, 2001

AIR, the Boston-based catastrophe modeling firm, has released an earthquake model for Japan that incorporates ACM(TM) technology. The model was made available to AIR's clients last week in time for the impending renewals of reinsurance coverage for Japanese insurance companies.

"This release is in keeping with our commitment to delivering to our insurer and reinsurer clients the most advanced technology for assessing the loss potential of earthquake-prone structures worldwide," said Mr. Uday Virkud, P.E., AIR Senior Vice President.

The driving distinction between AIR's Japan earthquake model and the models of other firms is ACM (Advanced Component Method(TM)). ACM enables the AIR model to treat buildings as complex collections of individual structural and non-structural components, each of which responds uniquely to the natural resonance between the building and incoming seismic waves. The benefit of ACM for companies using AIR's model is the ability to base risk management decisions on more refined loss estimates generated using a rigorous, engineering-based methodology.

AIR has worked closely with a leading Japanese design firm, who provided detailed specifications and design documents for representative structures conforming to local Japanese construction practices and code. Using these detailed designs and through a simulated "pushover" process, AIR engineers have captured how Japanese buildings are likely to behave during an earthquake and have incorporated that information in the damage relationships that mathematically describe the response of structures to earthquakes.

Applied Insurance Research is the technological leader in providing catastrophe modeling services and computer software solutions (CATMAP(R)/2, CLASIC(TM), CLASIC/2(TM) and CATRADER(R)) to the insurance, reinsurance and capital markets. AIR's models simulate losses from natural catastrophes such as hurricanes, hail, tornadoes, other windstorms, flood and earthquakes in over 20 countries. Offices are located in Boston, London, and Seattle. The company's Web address is www.air-worldwide.com.