RMS Europe Windstorm Models

Geographic Coverage: Version 15.0 of the RMS Europe Windstorm Models 15 countries: Austria, Belgium, represents the latest research and data on this complex Czech Republic, Denmark, peril, which has historically caused more damage and France, Germany, Ireland, loss for the (re)insurance market in Europe than any Luxembourg, Netherlands, Norway, Poland, Slovakia, other natural hazard. The updated Europe Windstorm Sweden, Switzerland, U.K., plus Models deliver an accurate and realistic representation of an extended offshore area for vulnerability variations by geography and risk type, and wind farms represent the forefront of European windstorm science. Perils Modeled

Extratropical cyclone winter storms, wind from summer thunderstorms, and storm surge (U.K. only) INFORMED UNDERWRITING AND RISK Lines of Business: DIFFERENTIATION

All key lines of business, RMS Europe Windstorm Models including residential, support more informed underwriting commercial, auto, industrial and and improved risk differentiation agricultural lines, across distinct through numerous advancements. The coverage types; building / models incorporates high-resolution content / business interruption. surface roughness data for modeling granular hazard variability, which Risk Types: is reinforced by detailed hazard calibration using data from thousands Hundreds of distinct of weather stations. In Version vulnerabilities, including unique 15.0, recalibrated vulnerabilities also risks such as forestry, wind provide a more accurate and realistic farms, and large and complex representation of historical loss industrial facilities data across all modeled countries. The models feature enhanced Exposure Data: building vulnerability definition and improved representation of regional RMS’ high-resolution industry construction practices, which better exposure databases are based represent variations in vulnerability on the latest information from by geography and risk type. These public statistics and government advancements enable you to obtain offices in Europe to provide the an improved understanding of most up-to-date view of insured vulnerability variations across a large exposure variety of lines of business—including specialized industry exposure—and by region, wind speed, and coverage type (building / content / business interruption). UNDERSTAND TAIL RISK Stress test your portfolio and validate AND LOSS CORRELATION the Europe Windstorm Models using an unprecedented 135 historical Most extreme wind events have benchmark event reconstructions from limited or no historical precedence. the 1970s through today, including RMS ensures that such events important recent storms like Kyrill are represented by simulating (2007), Klaus (2009), and Xynthia over 100,000 years of windstorm (2010). activity in Europe. Over 30,000 unique extratropical windstorms are represented in the stochastic event set, capturing the complex THE FOREFRONT structure of surface wind fields while OF SCIENTIFIC representing the widespread impact UNDERSTANDING of these large-scale events. This The RMS scientists and engineers that ensures that modeled losses represent developed the Europe Windstorm both local hazard details as well Models are based in Europe and infrequent severe loss potential. apply their in-depth local knowledge Enhanced spatial correlation of and expertise to ensure the model hazard across countries in the remains up-to-date with the latest version 15.0 release will improve your understanding of this complex hazard. understanding of loss correlation RMS Europe Windstorm Models across a geographically diverse incorporate windstorm activity up to portfolio, and increases confidence December 2013 to represent the latest in model loss estimates from large view of windstorm hazard, including windstorms that impact multiple lessons learned from recent events. countries. The models also provide multiple views to enhance your understanding of the uncertainty associated with windstorm risk:

• Understand the impact of storm clustering impact ofmultiple large events in a year on your portfolio

• Evaluate the uncertainty Wind storm Anatol, Wind storm Anatol, December 2-3, 1999 wind speed footprint surrounding windstorm activity using an additional view of hazard that represents climate variability, in POST-EVENT LOSS order to measure and understand the AMPLIFICATION uncertainty inherent to windstorm risk Understand the impact of the increased cost of materials and labor, fraud, and other claims inflation after UNDERSTAND MODEL very large events using the RMS post- ASSUMPTIONS FOR event loss amplification methodology, SOLVENCY II ABOUT RMS which was built in consultation with RMS models and software help insurers, key European stakeholders, and Benefit from an unprecedented level financial markets, and public agencies represents. of transparency about our models, evaluate and manage catastrophe with over 1,000 pages of detailed risks throughout the world, promoting documentation on the RMS Europe resilient societies and a sustainable UNPRECEDENTED MODEL Windstorm Models, including specific global economy. Our scientific VALIDATION AGAINST Solvency II material. and objective measurement of risk CLAIMS AND HISTORICAL facilitates the efficient flow of capital EVENTS needed to insure, manage, and mitigate risks to reduce the consequences of Model outputs have been validated disasters. against over 2 million claims records, representing over €29 billion of claims RMS covering 18 years of windstorm events 7575 Gateway Blvd. in Europe. Newark, CA 94560, USA www.rms.com