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Loss modelling

Natural hazards loss modelling is the process of estimating the impacts caused by natural hazard events and is the way we build our view of New Zealand’s natural hazard risk. Loss modelling provides data, insights and knowledge to support the decisions we and others make.

Through loss modelling, we can estimate natural hazard damage costs, both before and after natural hazard events. This enables NHC Toka Tū Ake to:

  • strengthen resilience by building knowledge and understanding of natural hazard risks to improve decision-making
  • continuously enhance our readiness for natural hazard events
  • use our risk financing expertise to manage the fiscal risks of providing natural hazards insurance cover
  • support homeowner and community recovery by working with our partners to deliver a transparent, timely, high-quality and responsive process for natural hazards insurance claims.

Our loss modelling tool is called PRUE. PRUE uses RiskScape, developed by Earth Sciences NZ, as our loss modelling engine. We are working with Earth Sciences NZ to expand the capability of RiskScape.

RiskScape(external link)
Earth Sciences NZ(external link)

We are investing to increase the range of natural hazards we model loss for. Our plan is to grow from modelling earthquake shaking building losses to all natural hazards that NHC provides insurance for. We are also investing to model more complex, multi-hazard events, such as landslides after earthquakes.