EQECAT Selected to Assist Taiwan Insurance Industry Earthquake Insurance Pool Study.Business Editors OAKLAND, Calif.--(BUSINESS WIRE)--June 7, 2000 EQECAT was selected by government-owned Central Reinsurance The contract made between an insurance company and a third party to protect the insurance company from losses. The contract provides for the third party to pay for the loss sustained by the insurance company when the company makes a payment on the original contract. Corporation (CRC (Cyclical Redundancy Checking) An error checking technique used to ensure the accuracy of transmitting digital data. The transmitted messages are divided into predetermined lengths which, used as dividends, are divided by a fixed divisor. ) of Taiwan to assist in a feasibility study "A Feasibility Study" is an episode of the original The Outer Limits television show. It first aired on 13 April, 1964, during the first season. It was remade in 1997 as part of the revived The Outer Limits series with a minor title change. for a voluntary residential earthquake insurance Earthquake insurance is a form of property insurance that pays the policyholder in the event of an earthquake that causes damage to the property. Most ordinary homeowners insurance policies do not cover earthquake damage. pool. The action was in response to the September 21, 1999 Chi Chi earthquake, in which 107,000 households were destroyed because they were in collapsed or partially collapsed buildings. EQECAT will use its advanced catastrophe models combined with expert consulting support to develop adequate rates or tariffs, establish appropriate underwriting criteria and assess the necessary reinsurance or securitization Securitization The process of creating a financial instrument by combining other financial assets and then marketing them to investors. Notes: Mortgage backed securities are a perfect example of securitization. May also be spelled as "securitisation. to ensure the solvency of the program.
The objectives of the insurance pool include:
-- Availability: Earthquake insurance should be widely available
to consumers.
-- Underwriting: The program can either require risks to meet
minimum underwriting standards or all risks can be accepted
with rates that properly reflect the risk exposures.
-- Actuarially Sound: Rates and exposures will be based on
underwriting standards, using modern risk modeling techniques
to estimate the loss potential.
-- Economically Viable: Through the use of reinsurance and/or
risk securitization techniques, ensure that the program is
economically viable and will respond in the event of a major
earthquake.
The achievement of the above objectives calls for a rating and
underwriting system based on risk quantification. EQECAT will assist
CRC in performing the following tasks:
-- Development of probabilistic loss exceedance estimates.
-- Development of rates based on annualized hazard occurrence,
soil conditions and structure vulnerability functions.
-- Establishment of Policy conditions (limits, deductibles and
coverage provisions) and underwriting standards that support
the overall program objectives.
-- Active management of accumulations and total exposures to
predetermined limits to achieve financial objectives.
EQECAT, Inc. (http://www.eqecat.com), a subsidiary of EQE EQE Equivalent Quantum Efficiency EQE Environmental Quality Evaluation International ( http://www.eqe.com), is a leading provider of catastrophe management software and consulting services Noun 1. consulting service - service provided by a professional advisor (e.g., a lawyer or doctor or CPA etc.) service - work done by one person or group that benefits another; "budget separately for goods and services" to the insurance and financial communities. EQE International, a member of the ABS Group of companies, has over 600 employees worldwide. For additional information, contact Mike Vallejos Mike Vallejo (born in Miami, FL) was a professional boxer. Known as "The Pit Bull", he was a contestant on reality TV show The Next Great Champ on Fox and was eliminated from the show after being decisioned by Otis Griffin. External links
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