Moody’s RMS™ earthquake models are crafted from a rich blend of historical insights, the latest in earthquake science, detailed geological conditions, and global engineering knowledge. Designed to deliver deep insights into earthquake risks, our models account for a wide range of effects including tsunami and fires following earthquakes. Beyond primary threats, our models adeptly capture the complexities of the secondary geohazards such as liquefaction and landslides, allowing for a thorough understanding of both widespread and localized earthquake risks.
At the core of our offerings, the HD modeling framework helps firms understand earthquake risk by using high-resolution simulations to generate realistic event timelines and losses, capturing hazards’ temporal and spatial development. This approach not only tracks the evolution of hazards over time and space but also provides comprehensive loss estimates to seamlessly integrate with one's financial considerations.
Combining the latest scientific research and data, we provide a comprehensive solution for assessing earthquake risk that supports a wide range of applications, from policy pricing and primary underwriting to managing exposure aggregations and understanding tail risk.
Moody's RMS earthquake models incorporate a wide range of seismic hazards focused on the key drivers of seismic risk for each geography. These include ground shaking, liquefaction, earthquake induced landslides as well as fire following earthquake, earthquake sprinkler leakage, and tsunami where applicable to provide a robust representation of earthquake risk.
Advanced methodologies, such as spectral response-based damage estimation and variable resolution grids, allow for high-resolution risk assessment and loss quantification, helping users make detailed analyses at both the individual location and portfolio level.
The HD modeling framework provide an understanding of earthquake risk by using high-resolution simulations to generate realistic event timelines and losses, capturing hazards’ temporal and spatial evolution. This approach provides detailed, ground-up loss estimates that flow through financial contracts, enhancing accuracy in risk assessment and decision-making.
Our earthquake models incorporate the effects of sub-perils such as tsunami and fire-following earthquakes, and, where relevant, provide an individual impact assessment. The models account for the complex secondary geohazards of liquefaction and earthquake induced landslides to accurately represent their potential to cause both extensive and highly localized losses.
The development of our earthquake models involves collaboration with local experts, scientific agencies, and the local insurance market. This helps make sure the models are based on the latest scientific research and local building practices, thereby enhancing their accuracy and reliability.
Our earthquake models use localized data, such as geotechnical data layers and region-specific ground motions, to provide accurate hazard estimates. Benefit from country-specific expertise with models built in close collaboration with on-the-ground scientific agencies, local engineers, and research bodies.
The California Earthquake Authority (CEA) is one of the world’s largest providers of residential earthquake insurance representing over 1 million policyholders and with a claims-paying ability of about $19 billion.
Moody’s RMS North America Earthquake Models provide a holistic view of earthquake risk across the United States, Canada, and Mexico. Incorporating the latest seismic hazard data from the US Geological Survey, the Geological Survey of Canada, and the latest scientific information about seismic sources in Mexico, the models include advanced features such as probabilistic liquefaction and landslide models, basin models including below Los Angeles and Mexico City, a comprehensive fire-following earthquake model, and the ability to model induced seismicity in the US Midwest.
Moody’s RMS South America, Central America, and Caribbean Earthquake Models provide a comprehensive solution for assessing earthquake risk across 46 countries, islands, and territories. With a comprehensive update in 2022 for Central and South America and in 2024 for the Caribbean, these models incorporate the latest scientific research and methodologies — including updates to ground motion models, geotechnical data, and vulnerability functions — to accurately estimate the impact of ground shaking, liquefaction, landslides, and tsunamis.
The Europe earthquake HD models’ have been completely rebuilt using the HD framework to support and advance how the market manages earthquake risk across such a diverse region. With coverage of over 23 countries, the model has unified all major catastrophe perils impacting the European continent as part of the HD modeling framework, along with the Moody’s RMS Europe Windstorm HD Model, Moody’s RMS Europe Severe Convective Storm HD Model, and Moody’s RMS Europe Flood HD Model
We offer a comprehensive earthquake model suite of 14 models with coverage across the Asia-Pacific region, including Japan, New Zealand, China, India, Taiwan, Indonesia, and the Philippines.
These models incorporate the latest scientific research and high-resolution geotechnical data to accurately model soil amplification, earthquake-induced landslides, and liquefaction, along with country-specific vulnerability functions developed with local engineering expertise. With a consistent framework for modeling loss across a range of scales, from location to portfolio and within a city or across country borders, firms can apply rigorous analysis to regional earthquake risk analysis.
The Moody's RMS HD Earthquake Models offer a detailed and advanced assessment of earthquake risk, integrating the latest scientific research and data from significant events. The models include comprehensive modeling of ground shaking, liquefaction, and earthquake-induced landslides, as well as tsunami inundation and fire following an earthquake where applicable, providing a robust and holistic view of potential earthquake impacts.
The California Earthquake Authority’s project, coordinated by PEER, set out to enhance the seismic resilience of wood-frame houses and reduce earthquake losses through effective retrofitting measures. Read our whitepaper to learn how the CEA achieved its retrofitting goals.
The Europe earthquake HD models’ have been completely rebuilt using the HD framework to support and advance how the market manages earthquake risk across such a diverse region
The Japanese Meteorological Agency’s recent advisory highlights the increased risk of a megathrust earthquake following a significant foreshock, emphasizing the need for enhanced earthquake preparedness in Japan.
The updated Version 22 RMS® Central and South America Earthquake Models provide the most up-to-date view of earthquake risk in 15 countries, which have a combined population of approximately 450 million people.
With a magnitude of 7.6, the Chi-Chi earthquake remains Taiwan's most damaging earthquake of the 20th century. Twenty-five years later, our blog revisits the catastrophe and Taiwan's efforts to rebuild resilience.
Twenty-five years later, we revisit the 7.4 magnitude earthquake that struck İzmit, Turkey, causing extensive damage and resulting in over 18,000 fatalities.
JMA issued an advisory after M7.1 quake, warning of increased megathrust earthquake risk. This highlights complex tectonics, historical patterns, and a need for rapid risk modeling in response to potential foreshocks.
The Kahramanmaraş Earthquake Sequence in Turkey in February 2023, caused over 50,000 fatalities. Insured losses exceeded $6 billion, revealing underinsurance issues. Efforts are ongoing to improve earthquake modeling and expand insurance coverage.
RMS’s model for Australia's earthquake risk includes broader data than the 2018 National Seismic Hazard Assessment, considering geological records and active faults to account for larger-magnitude quakes not fully represented in short-term catalogs.
The Mw6.9 Loma Prieta Earthquake in 1989 resulted in an estimated $6 billion in economic losses in the San Francisco Bay Area. Today, the region's increased population and economy could mean astronomical damages if a similar event occurred.
The Mw7.1 Ridgecrest earthquake in July 2019 — the strongest in California in two decades — underscores the state's high seismic risk. Enhanced data collection since then promises deeper understanding of quake dynamics and risk assessment.
We lack a precise term for the cause of earthquake vibrations, akin to "lightning" for thunder. Suggestions like "strainburst" and "faultspring" aim to describe this sudden crustal strain release and fault displacement.
The term "epicenter," once tied to defunct theories, now marks the surface point above an earthquake's start. Usage of the word persists although it can be misleading when it comes to large quakes with extensive fault ruptures.
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