October 31, 2012: In 2011, Thailand experienced its worst flooding in years, which severely damaged and disrupted manufacturing operations in seven large industrial parks. Due in large part to the significant concentration of insured values in these parks, total insured loss from the 2011 flood is estimated to be in the range of USD15 to USD20 billion. In light of the disproportionate contribution of losses from industrial estates to overall insured loss, Guy Carpenter & Company has developed a database of industrial parks in Asia to help clients better identify and evaluate potential risks in the region.
The database has pinpointed industrial parks in China, Taiwan, Thailand and Indonesia, digitized their boundaries and will provide access to these maps through i-aXs®, Guy Carpenter’s proprietary and award winning exposure visualization and portfolio management platform. Using i-aXs, Guy Carpenter clients will be better able to evaluate their concentration of risk, arising from having multiple insured risks within a single industrial estate, and the risks associated with natural perils impacting those areas.
In addition to determining the location and size of the industrial parks, Guy Carpenter is maintaining a list of all the companies operating in the various parks, as well as their supplier information and type of industry where available. Access to this supplier information will be a useful first step and important tool to investigate loss potential from contingent business interruption across various countries and perils.
James Nash, CEO of Asia Pacific Region, said, “One of the critical lessons learned from the Thailand flood is not only the enormous potential for property loss if a large industrial park is impacted by a catastrophe, but also the ripple effect of business interruption and contingent business interruption losses arising from shutting down key manufacturing locations. The development of the industrial park database for these initial four countries is an important step in helping companies analyze their exposure to losses originating from industrial parks.”