The China financial loss model has been developed by GEM using public sources of information, such as past seismicity, and geodetic and geologic data for the hazard component, combined with exposure and vulnerability data.

The hazard component incorporates both faults and area sources. Earthquake occurrence rates on active faults are based on a new tectonic block model derived from the joint inversion of geodetic and geologic data.

The model provides estimates of financial risk to residential, commercial and industrial buildings using GEM’s vulnerability models appropriate to Chinese construction practice. GEM has also developed an exposure model that can be used to estimate total losses to the building stock in addition to portfolio losses.

Further technical information can be found in the documentation. GEM extensively collaborated with its private and public partners to test and validate the model against industry standards in order to produce a new model that represents GEM’s view of risk. The model is available in Oasis and Touchstone formats, as well as through the NASDAQ platform.