The Google Maps based interface factors in data on every building in earthquake and tsunami risk areas and calculates the likelihood of damage. The insured will be able to pay according to the risk for the specific building
Running up to the 100th anniversary of the last major earthquake in Israel, Choco Digital Insurance has announced the launch of a unique technological interface, based on Google Maps. The model calculates insurance costs automatically and in real time according to the level of earthquake and tsunami risk for a specific building.
The model calculates the likelihood of destruction of the building as a result of an earthquake according to criteria including the construction year, age of the building, type of structure, number of floors, type of land, distance from the sea (damp and deterioration) and so on, and the rusk for the specific building.
Choco is a pioneer in this area and is so far the first in Israel with a model which maps earthquake and tsunami risks, land types, distance from emergency service centers and hospitals in terms of time and kilometers on a Google Live map.
“The earthquakes model that has been launched includes a rivers layer feature enabling an automatic indication of proximity to a river and the risk of inundation and damage to ground floor shops and stores for every building and focused updating in real time only for structures that are at risk, says Choco Digital Insurance CEO and founder Liav Gefen.
Gefen says that according to the Geology Institute Seismology Division, at 11.43 on August 13 2022 a 3.1 magnitude earthquake occurred in the Malchia area, 12.5km north-west of Amiad in the north of Israel. A check found that the earthquake focus was in an area of high to very high risk. The location points to the possibility of the rift reaching there or passing under Malchia.
“Since we are approaching 100 years since the last major earthquake in Israel, the Capital Market Commissioner Dr Moshe Bareket has declared that the Authority is considering imposing compulsory earthquake insurance.
“The model forecasts on the potential for damage to private and commercial buildings, national infrastructures as a result of an earthquake running to some 650 billion shekels. The model is based on the mapping of more than one million private houses in Israel and factors in for each building the distance from the risk area, taking into account of the construction year and the structure itself. The model runs all the possibilities for millions of private homes in Israel and calculates the extent of the damage to each of them. The damage to private homes is estimated at 250-300 billion shekels. The damage to all of the infrastructures and public buildings is estimated at 650 billion shekels.
“Choco’s earthquake system is able to carry out pricing for a specific building, enabling the insured to pay according to the level of risk and not a shekel more. Our goal from day one is to bring into play the phenomenal capabilities that technology can offer at the best possible degree of accuracy and reduce the cost of the insurance and pass on the savings to end consumer”.
