New Zealand’s EQC says a sophisticated new next-generation loss modelling software tool is set to improve its natural disaster planning and response.

RiskScape will first model damage from earthquakes and Head of Risk Modelling Andrea Gluyas says the new tool will in future also model losses from other perils such as tsunami and volcanoes.

Replacing the Minerva platform EQC has been using for 20 years, RiskScape was developed as a joint venture between GNS Science and NIWA, with EQC making a significant contribution over the last three years.

“This new tool will allow us to incorporate the latest science to understand the impact of natural hazards on New Zealand homes, helping us to better plan for future events as well as providing critical information immediately after an event to help us best prioritise assistance,” Ms Gluyas said.

RiskScape is being used for reinsurance modelling to start, with scenario planning being incorporated in the coming year. It will allow EQC to continuously bring its research and insurance data into its risk modelling, creating a comprehensive picture following an event and improving its ability to plan.

The modelling tool helps set the EQC levy rate, create near-real-time loss estimates to allow the insurance and emergency response sector to quickly understand the scale and spread of damage after an event, help build community resilience and provide international reinsurance partners with an advanced view of hazard risks in New Zealand -- critical in securing reinsurance.

EQC CFO Fraser Gardner says the new modelling would help maintain a high level of trust with the international reinsurance industry by providing a New Zealand-specific view of risks based on world-class modelling, research and data.

“This new tool will continue to give reinsurers confidence in our ability to provide an accurate view of our risk profile through the addition of new science and understanding of the other perils covered by EQC,” he said.

EQC provides insurance for damage to homes caused by earthquakes, volcanic eruptions, hydrothermal activity, tsunamis and fires resulting from these natural disasters. Since June, private insurers have handled EQC claims on its behalf in an agreement that includes improved data sharing.