Aon Re Africa team up with Xtreme Loss Solutions with earthquake modelling software

Aon Re Africa, has announced its intension to team up with Xtreme Loss Solutions, a young and innovative company with earthquake modelling software that will revolutionise the way insurers calculate and assess their catastrophe exposures.

Aon Re Africa, a leading provider of facultative, treaty, healthcare & life reinsurance solutions, as well as capital risk modelling services and rating agency services, is deeply entrenched throughout Africa giving it invaluable insights into the risk management needs of the continent. Access to this software is expected to catapult Aon into an undisputed leader of choice position. Additionally, Aon Re Africa’s access to its parent company, the world’s largest risk broker, Aon Corporation provides the company with access to global resources and an extensive distribution network.

XLS was founded in April 2007 by partners Riaan Botes (Actuary) and Adi Hazan (Programmer) who are well known in the industry. Together they have developed a desktop earthquake model for South Africa and Kenya and will soon be concluding models for Egypt, Tunisia, Morocco, Algeria and Israel. The methodology embedded into the software, approved by the Council of GeoScience - Dr. Andrzej Kijko, is able to model both mining induced quakes and tectonic quakes.

The Windows based desktop application, will enable Aon Re’s clients to view their exposures on a map, enabling them to evaluate and quantify earthquake losses for different return periods given their unique risk profile.

“In addition to our EQECat license and although we have an Aon developed earthquake model locally, the addition of XLS’s software will provide a valuable level of independence and transparency for our clients in terms of how much catastrophe cover they need to purchase. Our agreement allows us to license the model for clients on their desktops. With this technology at their fingertips, clients can then draw their own conclusions with specified assumptions” says Mike Raal, Deputy Managing Director of Aon Re Africa.

“The software is ideal for Africa because it has the unique ability to accommodate incomplete data. In due course we will expand the models for other natural catastrophes such as hail, flood, tornados and tsunamis. This can further be enhanced to incorporate man-made disasters such as terrorism and supply-chain risk” says Riaan Botes founding partner of Xtreme Loss Solutions.