Australia

	Cyclone
	Earthquake

Australia Cyclone

Since 1995 the RMS® Australia Cyclone Model has been used by the local insurance industry, multi-national insurers writing business in Australia, the global reinsurance community, and capital markets constituents to evaluate and transfer cyclone risk in Australia.

Cyclone risk in Australia was raised to the forefront of the international consciousness following Cyclone Tracy in 1974, which destroyed virtually the entire town of Darwin in the Northern Territories. Tracy caused severe damage and led to the complete re-evaluation of Australian building codes. Wind gusts in Cyclone Tracy were estimated at 140-175 mph (225-281 km/hr), with total damage estimated at $650 million (1990 Australian dollars). Approximately 75% of the homes in Darwin were considered a total loss.

Another major storm, Cyclone Althea, which hit Townsville, Queensland in 1971 produced peak gust windspeeds between 123 and 145 miles per hour (197 km/hr and 233 km/hr) and caused an estimated $115 million loss (1990 Australian dollars). More recently, in March 1999, Cyclone Vance approached the west coast with the strongest winds ever recorded near Australia. Despite weakening before landfall, Vance caused severe damage to local populations.

Australia is exposed to cyclone risk on the eastern, northern, and western coasts from November to April, with the most storms occurring between approximately 15° and 22°S. The most active months are January, February, and March when cyclones travel from the north and typically head southeast or southwest toward the mainland. The West coast experiences more frequent and more extreme events but has very little insured exposure.

The majority of cyclone risk in Australia resides in the state of Queensland. The southernmost coastline of the state near Brisbane (including the Sunshine coast and Gold coast) contains the majority of the insured exposure. However, cyclones have historically lacked severity and occurred infrequently near Brisbane. Along the coast further to the north, where cyclones are more common, exposure is concentrated in the towns of Mackay, Townsville, and Cairns, and large stretches of the coast are unpopulated.

Model Highlights

	First RMS model to incorporate wind direction and terrain in high-resolution windfield modeling
	Incorporates the effects of bypassing and transitioning storms
	Up to 100 years of historical data developed with leading local consultants
	Takes into account local/regional construction differences and building code changes over time, and incorporates detailed building inventory data
	High resolution storm surge modeling for the largest exposed urban areas

Geographic Scope

The RMS® Australia Cyclone Model covers all areas of the country that are considered to be at risk from cyclones. Cyclone risk extends from Perth (on the southwest coast), around the northern side of the country to Brisbane (on the southeast coast). Scientific consensus is that areas south of Brisbane have virtually no cyclone risk. The following territories/states are considered exposed to cyclone risk in the Australia Cyclone model:

Northern New South Wales
Northern Territory
Queensland
Western Australia

Exposure Data Resolution

The RMS® Australia Cyclone Model supports analyses at the following levels of geographic resolution: Latitude/Longitude, Postcode, CRESTA

Australia Earthquake

Since 1994 the RMS® Australia Earthquake Model has been used by the local insurance industry, multi-national insurers writing business in Australia, the global reinsurance community, and capital markets constituents to evaluate and transfer earthquake risk in Australia.

Australia lies in the middle of the Australian tectonic plate, a stable continental region home to some of the oldest geological formations on the Earth's surface. There are few identified active faults and seismicity is distributed throughout the country. While seismicity is low compared to more tectonically active regions such as Japan and California, most of Australia's metropolitan areas have at least moderate seismic risk. Distant subduction zone events near Indonesia may be felt in parts of northern Australia that have little exposure. However, damaging earthquakes in Australia are intraplate events that occur infrequently and in a geographically dispersed fashion.

Approximately 70 earthquakes are known to have caused damage to populated areas since 1788. The largest earthquake recorded in Australia was the 1941 Meeberrie Earthquake with magnitude (ML) 7.2. The earthquake that caused the largest historical loss in Australia is the 1989 Newcastle Earthquake, which registered a modest magnitude of (ML) 5.6, but caused 13 deaths and an estimated AU$4 billion in total damage. Other significant earthquakes include the Ms 6.9 Meckering Earthquake in Western Australia in 1968 and the ML 5.4 Adelaide Earthquake in 1954, both of which caused localized damage to many buildings.

Model Highlights

	Model developed in collaboration with Geoscience Australia
	Spectral acceleration attenuations based on local and global parameters
	High-resolution hazard modeling using RMS' Variable Resolution Grid, and features high resolution geotechnical data coverage in major cities
	Spectral response damage functions link building characteristics with the frequency content and amplitude of ground motions
	Vulnerability functions calibrated using extensive loss data from the 1989 Newcastle Earthquake

Geographic Scope

Almost all areas of Australia are at risk from seismic activity, and therefore the RMS hazard module extends across nearly the whole country. The following territories/states are considered exposed to earthquake risk in the Australia Earthquake model:

Western Australia
Northern Territories
Queensland
New South Wales
Australian Capital Territory
South Australia
Victoria
Tasmania

Exposure Data Resolution

The RMS® Australia Cyclone Model supports analyses at the following levels of geographic resolution: Latitude/Longitude, Postcode, CRESTA