Location Based Earthquake Model (LBEM) is an advanced vulnerability module that is designed to work with RMS earthquake to more accurately define and analyse the damageability of a comprehensive set of industrial facilities, and calculate the financial risk to these specific types of facilities, including building, contents, and business interruption (BI) loss estimates.

The need for the LBEM is due to the unique nature of industrial risks, as a high percentage of property value is associated with machinery and equipment (M&E) and stock. In an earthquake there can be large losses to inventory and disruptions that impact business interruption coverages. Moreover, there is a need to differentiate risk by industrial occupancy type, as the relationships between building, M&E, and stock damageability vary greatly by occupancy type. 

In the LBEM, a user can include site-specific facility conditions in order to model the risk as accurately as possible. The differentiation of risk between specific facility types reduces the uncertainty in industrial facility loss results and permits better decisions in underwriting industrial risks for both individual accounts and entire portfolio exposure. The model covers a wide range of facility types (for example, from nuclear power plants to semi-conductor factories). 

We provide Location Based EQ Modeling analysis to support their clients in their facultative decisions.