Willis Becomes First Broker to Sponsor OECD’s Global Earthquake Model
Support of GEM Initiative Aimed at Addressing Earthquake Risk Worldwide
London, UK, October 16, 2008 – Willis Group Holdings (NYSE:WSH), the global
insurance broker, is sponsoring the Global Earthquake Model (GEM), a five-year
initiative of the Organisation for Economic Co-operation and Development (OECD) to
produce the world’s first earthquake model with comprehensive and consistent
coverage around the world – including in developing countries where no reliable
models exist today. Willis is the first re-insurance broker to support GEM, joining its
Governing Board whose members include Munich Re and other industry leaders.
Over half a million people died in the past decade due to earthquakes and tsunamis,
mostly in the developing world, where the risk is increasing due to rapid population
growth. But in many seismic regions, no hazard models exist, creating significant
barriers to awareness, risk mitigation and emergency response.
GEM is an open source global earthquake model that creates an independent
standard to calculate and communicate earthquake risk, raise awareness, promote
mitigation, and stimulate insurance and risk sharing.
“GEM is a vital and important project to confront seismic risk and we are delighted to
be a part of it,” said Rowan Douglas, Managing Director, Willis Re and Chairman of
the Willis Research Network. “This model is the key to saving lives, guiding public
policy, protecting property and liberating capital – from national catastrophe pools to
micro-insurance – to finance this risk.”
GEM will also bring significant benefits to seismic risk management in the US and
other developed economies.
Julie Serakos, Executive Vice President, Willis Re, added, “The science that GEM
generates will be made available to all: from emergency response managers in
remote seismic regions to catastrophe modelling companies looking to further refine
certain aspects of their models, to insurance companies and governments looking for
solutions to manage the financial implications of major earthquakes. GEM creates a
consistent view of risk that will allow all groups to work together on effective solutions
for a given region.”
As part of its sponsorship of the GEM initiative, Willis will contribute scientific
research into seismic risk through its Willis Research Network (WRN), the world’s
largest collaboration between academia and the insurance industry to provide
cutting-edge research into catastrophe risks. Leading members of the world’s
seismic risk academic community belong to the WRN, which supports research in
seismic risk reduction by university-based WRN Fellows. Willis’ commitment to GEM
includes access to these teams, and integration and coordination of relevant WRN
research programmes.
“The combination of financial, academic and commercial resources provided by Willis
creates a strong fit and is a major contribution to GEM’s mission. We are delighted
to welcome Willis to GEM,” said Ross Stein of the U.S. Geological Survey and one
of GEM’s founders. “Willis is unique in its strong support of non-proprietary academic
research. They have built a powerhouse network of scientists and Fellows in seismic
risk science whose contribution will profoundly strengthen GEM.”
“The Global Earthquake Model exemplifies the best in Open Risk Analysis – that is,
transparent, openly accessible data, methods and tools for assessing earthquake
hazard and potential losses. Open Risk Analysis is the foundation underpinning all
risk reduction of natural hazards, whether by global institutions such as the World
Bank and major insurers, or by local villagers,” said Charles Scawthorn, Professor
(ret.) and former head of the Earthquake Disaster Systems Laboratory of Kyoto
University (Japan), a WRN Senior Academic, and a leading GEM contributor.
GEM is seen as another significant example of the deepening collaboration between
academia and the insurance industry to confront major challenges of risk.
“The GEM Project is an excellent opportunity to bring together the many advances in
earthquake loss modelling which have been developed in the academic community in recent years, and to apply them to the needs of earthquake risk communities and
their insurers worldwide,” said Emeritus Professor Robin Spence of the University
of Cambridge and a member of the WRN.
The Willis Research Network (WRN) is the world's largest partnership between
academia and the insurance industry. Willis has so far teamed up with fifteen leading
institutions across a full range of disciplines from atmospheric science and climate
statistics, to geography, hydrology and seismology, to the impacts on the
environment via engineering, exposure analysis and Geographic Information
Systems. Additional information can be found at www.willisresearchnetwork.com
Willis Group Holdings Limited is a leading global insurance broker, developing and
delivering professional insurance, reinsurance, risk management, financial and
human resource consulting and actuarial services to corporations, public entities and
institutions around the world. Willis has more than 400 offices in nearly 120
countries, with a global team of approximately 20,000 Associates serving clients in
some 190 countries. Additional information on Willis may be found at
www.willis.com.