ax treatment ill affect the final “n a‚‚ition… if the vehicles ha‚ one throuh customs an‚ ere ‚eeme‚ to be valuation of vehicle claimsˆ importe‚ into China alrea‚y… the ‚eclare‚ oo‚s šsale› price… inclu‚in import levies… coul‚ apply for loss assessment purposes… ‚epen‚in on policy termsˆ hat oul‚ be consi‚erably hiher than the manufacturin or replacement value: custom ‚uties an‚ taxes on importe‚ cars in China can ma€e up for up to 50§ of the retail sellin price… or even more ‚epen‚in on the sie of the enineˆ he total number of cars in the affecte‚ area at the time may be €non… but it is not possible to ascertain from the par€in position alone hether customs ‚uties an‚ taxes have alrea‚y been pai‚ on these vehiclesˆ he extent of ‚amae to vehicles further ´ehicles outsi‚e the 1ˆ5 €m exclusion one but ithin the €m an‚ even further out aay from the centre of the blast is not ere also ‚amae‚… an‚ it is not clear ho ba‚lyˆ “n these cases… the Œuestion for clear… hich further complicates loss assessment purposes is hether the vehicles shoul‚ be “ritten‰off” as valuation assessmentˆ unsaleable… or hether they have resale value post cleanin an‚ repairˆ “f the latter… an actual sale price or neotiate‚ ‚epreciation rate for repaire‚ vehicles coul‚ be applie‚ to ‚etermine the resi‚ual value of a carˆ žoever… until a sufficient number of such sales have ta€en place… it ill be ‚ifficult to assess the amount of ‚epreciationˆ ˜urther… so‰calle‚ bran‚ clauses coul‚ increase loss estimates… ‚epen‚in on policy termsˆ ‘ome bran‚ clauses ive i‚e ‚iscretion to the insure‚ to claim total loss for a car ith ust limite‚ ‚amae… because sellin a repaire‚ vehicle coul‚ harm bran‚ reputationˆ his oul‚ be particularly relevant for cars ith no physical ‚amae… but here customers coul‚ have concerns about buyin a vehicle that as in the port of ian in hen the explosions occurre‚ˆ “™pen policies” for caro insurance a‚‚ ˜or caro an‚ containers… there is an a‚‚e‚ complexityˆ he i‚ely‰use‚ system of another un€non factor in final valuationˆ open policies for caro insurance šith a rate base‚ on turnover for a storae facility rather than ‚eclarations of the precise shipment› means that an insurer ‚oes not €no hat insure‚ caro is in a specific container or the exact value of its contentsˆ “n‚ications are that most of the vehicle “nformation alrea‚y publishe‚ by re/insurers suests that the ma ority of vehicle claims ill ultimately fall un‚er property claims in ian in fall un‚er the property insurance cateory… mostly arisin from hih‰ insuranceˆ value importe‚ cars at the onshore storae stae of their ourney to mar€etˆ žoever… the sheer volume of the ‚estroye‚ an‚ ‚amae‚ cars an‚ the numerous loss a‚ ustment an‚ a‚ u‚ication challenes as ‚escribe‚ above leaves the total insurance loss in a state of fluxˆ he very hih number of cars on the site suests some may have been there for an exten‚e‚ perio‚ˆ his coul‚ in‚icate that car manufacturers or importers use ports as interme‚iate storae facilities… somethin insurers may not have been aare of previouslyˆ he hih number of par€e‚ vehicles coul‚ also be in‚icative of the recent ‚onturn in the Chinese economyˆ •uttin the pieces of the pule toether •roperty an‚ caro present ma or ris€ he sie of the insure‚ loss of any ‚isaster event is larely ‚riven by the accumulation accumulation factors in ports… especially of ris€s simultaneously expose‚ to the same eventˆ •orts… arehouses… caro storae in bi centres li€e ian inˆ facilities an‚ in‚ustrial par€s are amon the locations ith most ris€ accumulation potentialˆ he concentration of store‚… loa‚e‚ an‚ unloa‚e‚ caro… infrastructure an‚ other in‚ustrial an‚ commercial activities mean in‚ustrial acci‚ents in… an‚ severe eather events at… these locations can enerate ma or accumulate‚ losses across multiple lines of businessˆ ‘uch as the case in ian inˆ he explosions happene‚ in a property close to lare storae an‚ transit spaces… here many hih‰ value ne cars ere par€e‚… an‚ also close to other in‚ustrial an‚ commercial buil‚ins typical of a ma or tra‚in hubˆ he explosions impacte‚ many ris€s simultaneously… an‚ there ere lare losses across many lines of businessˆ rac€in caro exposure is challeninˆ he shippin in‚ustry an‚ marine an‚ property insurers are ell aare of the potential for lare losses from accumulation of ris€sˆ žoever… Œuantifyin losses in caro areation points such as very lare container vessels or ports at any iven time is ‚ifficultˆ ‘ome re/insurers have ‚evelope‚ formal mo‚els to better un‚erstan‚ these ris€s… an‚ so improve the insurability of potential accumulate‚ lossesˆ žoever… ian in also shos that there nee‚s to be more ris€ mappin in areation points to better un‚erstan‚ exposure accumulationsˆ Swiss Re sigma No 1/2016 15
Natural Catastrophes And Man-Made Disasters In 2015 Page 15 Page 17