Risk Management Solutions (RMS) says a new typhoon model for China and Hong Kong provides significant advances in quantifying flood risk.

Its new model is based on more than 24,500 storms derived from the China Meteorological Administration’s historical storm data from 1945 to 2009.

Media reports say the model will be able to measure the flood risk in some of China’s most economically developed areas along its east coast, which are at risk from typhoons and flooding.

RMS International Region MD Matthew Grant says although flood and wind damage are driven by the same typhoon events, the new model allows companies to evaluate the losses independently.

“By gaining a stronger grasp of the driving forces behind a typhoon, companies will be able to select risk more confidently and capitalise on opportunities in the market.”