RMS issued a Paradex index value of JPY 107.4 billion for Typhoon Roke. The typhoon made landfall on the east coast of Japan on Wednesday, September 21.
The value is based on Paradex Japan Typhoon, an index that approximates modeled insured industry losses in Japan from wind only, and includes commercial, industrial, residential, and Zenkyoren1 lines of business. The residential line is the largest driver of loss from this event. Additional sources of loss not directly captured by the RMS® Japan Typhoon Model or the Paradex index values include flood.
Paradex estimates are used to support the objective and transparent placement of catastrophe risk in the insurance linked securities market. Montana Re Ltd. Series 2010-1 uses Paradex Japan Typhoon as a trigger and there is no risk of default to this bond as a result of Typhoon Roke.
Observation data was collected from SYNOP, a network of weather stations via the Japan Meteorological Agency (JMA). The JMA reported maximum sustained winds from Roke of between 92 mph and 97 mph at landfall, which is the equivalent to a category 1/category 2 hurricane on the Saffir Simpson Hurricane Wind Scale. The highest recorded wind speed was recorded at the Omaezaki station, in Omaezaki-shi, Shizuoka, with a maximum peak gust of 100.9 mph.
Source : RMS
