Howden Re and Temblor strike Turkish earthquake partnership

Howden Re has unveiled a partnership with catastrophe risk modelling firm Temblor.

The two firms will work together on Turkish earthquake risk, with the latter specialising in seismic hazard and risk assessment.

Reinsurance broker Howden Re said Tremblor will provide it with access to its ‘SiteAmp’ model, which makes data-driven insights on the susceptibility to and impact of earthquakes in Turkey.

Howden Re’s head of model research and evaluation for international, Myrto Papaspiliou, will join Temblor’s scientific advisory board.

The 2023 Kahramanmaras earthquake events led to over $100bn in economic and $6.2bn in insured losses,

Howden Re said SiteAmp would benefit from Temblor’s soil amplification models to better capture one of the key drivers behind the widespread damage observed during that event, supporting risk management decisions of Turkish cedants.

Founded in 2014 by two scientists who had worked at the US Geological Survey, Temblor provides re/insurance firms and insurance linked securities markets with earthquake models.

The initial partnership will focus on Turkey, but Howden Re said it and Temblor would explore expanding into additional earthquake-prone regions in Europe, Asia and South America.

Howden Re emphasised SiteAmp’s resolution as ‘market leading’, as well as detail and precision in soil amplification mapping.

Underpinned by more than 6,000 global data points, the broker said its model is continuously updated using machine-learning algorithms, which integrate new data to enhance its predictive capabilities.

“The 2023 events were yet another reminder of what the implications of a large earthquake in proximity to Istanbul could be and further underscored the importance of earthquake preparedness,” said Myrto Papaspiliou, head of model research and evaluation, international, Howden Re.

“We firmly believe it is fundamental to harvest the best science and data in order to overcome model limitations, support our clients in the quantification of their risk, and increase earthquake resilience. With that in mind, we are thrilled to partner with Temblor as we strongly believe that their offering uniquely enhances the modelling tools we currently have available in this region.”

This partnership comes as Howden expands its capabilities in the region, synthesising knowledge from pan-European seismic hazard and risk studies (ESHM20 & ESRM20), as well as analytics and model calibration around the damage observations from the 2023 earthquakes in the region.

“Recent earthquakes in Turkey have been devastating,” said Mario Baotic, managing director, international growth markets, Howden Re.

“Through partnering with Temblor, we will be able to give greater clarity to cedents and reinsurers, with updated science and data helping to minimise uncertainty in modelled loss estimates. I am very impressed by Temblor’s SiteAmp model and look forward to working with the Temblor team to support our clients in the region.”

Volkan Sevilgen, co-founder and chief technology officer of Temblor, added: “We are proud to collaborate with Howden Re in incorporating Temblor’s SiteAmp model into their offerings.

“This partnership underscores the critical role of advanced data and analytics in earthquake risk management, particularly for insurance companies operating in vulnerable regions like the Sea of Marmara. Together, we are setting new standards for risk assessment, enabling more accurate, data-driven decision-making, and ultimately enhancing the resilience of communities and the robustness of insurance portfolios against seismic threats.”