Business News: RMS, Roost/The Weather Company, Hiscox

Global risk modeling and analytics firm RMS announced the release of its new Japan Earthquake and Tsunami High Definition (HD) model. RMS collaborated with local experts, scientific agencies and insurers to develop a model that offers a more complete and detailed representation of earthquake and tsunami risk in Japan. The new model incorporates key research advancements from the 2017 Japan Seismic Hazard Maps, as well as lessons learned from the 2011 Tohoku Earthquake and the 2016 Kumamoto Earthquakes.

Following the 2011 event, the Japanese Headquarters for Earthquake Research Promotion (HERP) oversaw extensive research studies on key subduction zones surrounding Japan and driving the seismic hazard and risk. The new model was developed through extensive evaluation of this research, so it provides a unique, robust point of view for earthquake hazard in Japan.

Leveraging detailed damage statistics and claims data from recent events, the new model assesses building performance due to ground shaking, tsunami inundation, fire following earthquake, liquefaction and landslides. These are all considered in terms of losses for buildings, contents, business interruption, industrial facilities and builders risk. The new model includes explicit modeling of post-event loss amplification.

The model captures the current local building codes and construction practices, which reflect the building stock distribution in Japan. Additionally, based on recent major liquefaction events in New Zealand, the liquefaction model framework has been redesigned using Japan-specific data to more accurately assess liquefaction risk at a local level.

The new HD model allows for better integration of models into pricing and underwriting to help improve risk selection. This innovation enables more precise selection and pricing of risks. The market-leading HD Financial model provides for flexible and transparent loss calculations and can assess Japan specific policies and terms (e.g. step policy). The HD financial engine allows for an easier understanding of how losses are flowing through contracts which enables additional insight into contribution metrics and key drivers of risk.

Roost has partnered with The Weather Company, an IBM Business, to deliver emergency weather alerts to the policyholders of Roost Home Telematics insurance partners. The hyperlocal forecast alerts will begin rolling out as part of the Roost co-branded mobile app suite of application services. The first insurer to launch is GuideOne Insurance, with the customized weather alerts incorporated into all future co-branded app partnerships across the US and Europe.

By forecasting an imminent windstorm, torrential rain, snow, extreme temperature or damaging hail, Roost’s Home Telematics Platform will notify policyholders between 30 minutes to 24 hours in advance of expected emergency weather conditions. These severe weather notifications give policyholders an opportunity to use caution, seek shelter, or take the important steps to protect their property and help prevent potential losses.

The integration of this compelling and relevant early warning weather alert to policyholders is also a strategically important engagement opportunity to dramatically increase carrier “branding” with each weather alert notification.

Hiscox, an international specialty insurer, announced new coverage for its market-leading executive liability insurance policy for US businesses. Hiscox C-Suite focuses on management liability and crime coverage, and policies are available for companies of any size.

The management liability policy includes Directors and Officers’ coverage for not-for-profit and private organizations, as well as Employment Practices Liability, Fiduciary, and Employed Lawyers coverage. Insureds have a 180-day extended reporting period following the termination of a policy, built-in coverage for pre-claim inquiries for insured persons (such as informal investigations brought by a governmental entity) and coverage for claims alleging anti-trust violations for select industries.

Crime coverage, open to most industries including non-profit organizations and municipalities, applies to losses involving virtual currencies, and offers protection against tech fraud, extortion, and more traditional types of crime and fraud, like embezzlement. Features include, but are not limited to:

• Claims of tech fraud, which includes computer fraud, funds transfer fraud, cyber deception, customers’ accounts, and erroneous transfer.
• Third party coverage for theft from a customer, client, vendor, or others (even without a written contract). The term “Client” as used in the policy even includes a client of a client.
• Coverage for employee theft of an executive’s property, forgery of an executive’s accounts, and extortion.
• Coverage for a theft by an employee of an insured’s vendor.
• Coverage for employees, even when the insured is aware of their prior theft or history of dishonesty

The 2017 Hiscox Embezzlement Study, an examination of employee theft in the US, found that US businesses lost an average of $1.13 million in 2016 due to employee theft and dishonesty.

Hiscox C-Suite policyholders also can receive crisis management and legal assistance through industry partners Control Risks, Littler Mendelson and Epiq.