Page 39 - Insurance Times June 2021

caused by Tropical Cyclones. INCOIS - ESSO does not give
penetration of sea water on land during the storm
surge and the same is inferred from IMD reports.

Data Analysis

1. With GIS based data analysis, we have developed Web-
based application, this application enables marking of
the location of the client correctly using its Longitude/
Latitude.

2. Four damage zones viz. Red Zone (with high wind speeds
& Flash Floods), Yellow, Blue and Green (No hazard)
Zones are marked on the coast of India using the Tracks
of Cyclones and radial damage distances from tracks of
cyclones are derived from the paper "Some
Characteristics of Surface Wind Structures of Tropical business by whole of the General Insurance Industry world
Cyclones over the North Indian Ocean", Journal of Earth over. Looking at the parameters of the Tropical Cyclone at
the client location as given by the Risk Assessment Report
Sciences, 124, 1573 - 1598.
of the web application the Insurance companies can fine
3. Storm Surge zones are marked on the coast of India as tune their MPL Estimates to realistic levels. In our view
defined by INCOIS on the coast line and sea water Insurance Companies must analyze claims paid during latest
penetration on land is as given in IMD reports. 5 or 6 cyclones using our zones to arrive at realistic MPL
4. Probable decadal frequency of Tropical Cyclones & their Estimates.
intensities for zones identified by IMD are worked out
using Stastical method. Integration of the Web Application with
Insurance Company Portals
Web Application (Software) a) Underwriting

The website TROPCYC developed by Unity Geospatial LLP In today's world everything is on line. Hence the integration
has classifies coast of India into Red (Extremely hazardous of the web application with the computer portals of
zone), Yellow, Blue & Green Zone (No hazard Zone) and Insurance Companies is essential. It would give the Risk
produces a Report on "Risk Assessment of Tropical Cyclone" Assessment Report for client location & its MPL Estimate
(see sample copy of the report) at the client location which when linked with forecast of Tropical Cyclones in the
identified by using Longitude & Latitude. The report tells the next 10 years would recommend optimum premium for the
Insurer: client and this can be done from any of the offices of Insurer.
Y Whether the location of the client falls under Red/
Yellow/Blue/Green zone. It also tells the client wind b) Reinsurance
speed & rainfall he should expect during a cyclone
Web application, similarly will produce highest accumulation
event. of MPL Estimate on a real time basis and help plan
Y How many cyclones & their intensities that may hit the Reinsurance Strategy.
client location in next ten (10) years.
In addition to working out MPL & Accumulation of MPL
Y Describes in general vulnerability of the property and
Estimates the integrated web application would provide
loss prevention tools available. following services:
Y The report supports the above by giving full history of Y Insurance Company can underwrite their Tropical
weather disturbances and also major cyclones that hit Cyclone business from any of their offices.
the location from the year 1891 till today in a tabular Y Loss preventions and customer education can be done
form. effectively.
Y In case of a cyclone, the application would produce list
Maximum Probable Loss (MPL) Estimates of clients likely to suffer damages and it also can list the
MPL is used for Underwriting and Reinsurance in Insurance clients who would suffer severe damages. This can help

The Insurance Times, June 2021 39