TianŽin: a puŠŠle o ris‰ accumulation and coerage terms Capturin the spatial ‚istribution of caro Catastrophe mo‚ellin has tra‚itionally focuse‚ on static ris€s… such as buil‚ins an‚ is critical to an un‚erstan‚in of port infrastructures… inclu‚in those ithin portsˆ Šo‚ellin mobile ris€s such as ships accumulationˆ an‚ caro… an‚ ho the ris€s accumulate in ‚istribution centres… has alays been a 1† challeneˆ Accumulation manaement for caro usually involves co‚in the exposure as arehouse content usin fixe‚ location ‚ata… such as the central point of the portˆ žoever… ports are lare an‚ framente‚… often consistin of separate areas spannin €ilometers… as is the case of ian inˆ •roper caro mo‚elin must correctly account for the eoraphic ‚istribution of exposureˆ A‚vance‚ metho‚s are reŒuire‚ to a‚‚ress the complexity of these ‚istributionsˆ he shippin in‚ustry an‚ insurers can EŒuippin expensive oo‚s an‚ caro containers ith active sensors coul‚ help use the ian in experience to better‰ trac€ exposureˆ ”i ’ata an‚ smart analytics coul‚ ma€e marine ‚ata more un‚erstan‚ ris€ accumulation in ports… accessible… enablin better assessment of caro ris€ accumulations an‚ creatin an‚ on vessels tooˆ reater scope for mo‚ellinˆ he shippin in‚ustry an‚ insurers shoul‚ use the ian in experience as an opportunity to promote more robust un‚erstan‚in of ho exposures accumulateˆ “t is not only fires an‚ explosions that pose a ris€ˆ •orts an‚ ships can also be struc€ by natural catastrophes… as in the case of žurricane ‘an‚y in 2012ˆ20 “n all cases… a complex pu­­le of marine an‚ property cumulative loss scenarios can resultˆ he complexities presente‚ by the he ian in explosions are a remin‚er that lare‰scale man‰ma‚e in‚ustrial explosions have challene‚ the catastrophe events ‚o happenˆ he ‚isaster also thros liht on some ne insurance in‚ustryˆ consi‚erationsˆ “n particular… the sheer volume of motor vehicles involve‚ turne‚ some simple coverae issues into one of the biest challenes that the insurance in‚ustry has ever face‚ˆ ian in also shos that man‰ma‚e ‚isasters can have a ma or impact on a lobal an‚ complex scale… iven the lare number of sta€ehol‚ers sprea‚ across ‚ifferent uris‚ictions… each ith their on reulatory frameor€ˆ he ian in experience also hihlihts the ian in coul‚ ultimately become one of the larest man‰ma‚e insurance loss events ne potential ris€s facin ‚evelopin orl‚i‚e ever recor‚e‚ šsee able „›ˆ he event shos the lare loss potential in a countries ith rapi‚ly‰‚evelopin country li€e China… ith a fast‰roin economyˆ “f further evi‚ence is nee‚e‚… in economiesˆ 201 a fire at a ma or hih‰tech semicon‚uctor plant in ¨uxi… also in China… cause‚ insure‚ losses of Ž‘’ 0ˆ† billionˆ 2015 as the thir‚ year in a ro that the biest man‰ma‚e loss lobally oriinate‚ from an emerin mar€et… a remin‚er of the importance of insurance for ‚evelopin countriesˆ ˜inancial protection throuh insurance is €ey to restorin business operations an‚ recoupin lossesˆ Accurate assessment of exposures… appropriate coverae terms an‚ a‚eŒuate pricin are li€eise crucialˆ ˜or re/insurers… they nee‚ to actively i‚entify… monitor an‚ manae exposures in ha­ar‚ ­ones an‚ in areas ith hih asset‰value concentrationsˆ Table ƒ ‘ear CountrŒ …ent „nsured loss †ictims ƒarest man‰ma‚e insure‚ losses 2001 Ž‘ error attac€ on ¨C… •entaon… other buil‚ins 25ˆ2 2 †‡2 lobally… in Ž‘’ billion at 2015 prices 1†‡‡ ŽŸ Explosion on platform •iper Alpha ˆ0 16 2015 China Explosions at a arehouse storin ha­ar‚ous 2ˆ5 to ˆ5© 1 chemicals at ian in •ort 1†‡† Ž‘ ´apour clou‚ explosion at petrochemical plant 2ˆ„ 2 1†† Ž‘ ’amae at nuclear poer station 1ˆ„ 2001 ˜rance Explosion ‚estroys fertili­er plant 1ˆ 0 ©provisional ‘ource: ‘iss eˆ 19 …afe €avens† easuring natural catastro‡€e eˆ‡osure to cargo traded t€roug€ ‡orts… ‘iss e… 2010ˆ 20 žurricane ‘an‚y ‚estroye‚ thousan‚s of recreational boats alon the eastern coast of Ž‘ an‚ cause‚ sinificant ‚amae on many of the facilities of the •ort of Ne µor€ an‚ Ne ¤erseyˆ 16 Swiss Re sigma No 1/2016