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Industrial facilities risk

Given the high value of machinery, equipment, and inventory on site, industrial facilities risk presents certain challenges to the insurance industry. 

Our specifically designed and comprehensive modeling framework can help you understand and reduce the potential risks associated with industrial facilities.

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How we help

01 Component-based methodology

Component-based methodology

The vulnerability curves for the industrial facilities are generated using a component-based performance assessment that allows for more modeling flexibility and scalability.

Each facility is broken down into individual components and assessed based on the value percentages of the structure, monitoring and evaluation (M&E), and stock, which are used to create vulnerability curves for each component.

These individual vulnerability curves are then aggregated to create a specific vulnerability curve for the overall facility.

02 Integration across multiple peril models

Integration across multiple peril models

Designed to be fully compatible with our wind, storm surge, flood, and earthquake models for various regions, Moody’s RMS™ Industrial Facilities Models use the same event sets, geocoding, hazard, and financial engines as the base models for a consistent view of hazard risk.

03 Capture distinctive vulnerability characteristics

Capture distinctive vulnerability characteristics

The vulnerability characteristics of the industrial facilities line of business are different compared with the more general building contents considered by our base peril models.

A high percentage of the insured value is associated with M&E and stock rather than structures; given the significant variability in damageability of M&E and stock based on occupancy type, our model incorporates 51 unique occupancy codes to accurately capture these effects.

04 Built with local knowledge

Built with local knowledge

Moody’s RMS Industrial Facilities Models come with region-specific vulnerability curves tailored to account for local construction practices and building code requirements across more than 90 countries globally.

These vulnerability curves were created and validated using detailed claims information, event reconnaissance, and site-specific evaluations.

Where we help

Regional and country industrial facilities risks

News and views

blog

Jan 25, 2022

 Moody's
Managing risk and catastrophe modeling for the growing renewables sector

With the renewables sector growing, demand for advanced insights on catastrophe risk is rising. Our advanced risk insights and specifically designed Moody’s RMS Industrial Facilities Model for renewable energy facilities can enhance risk differentiation.

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blog

Jan 25, 2022

 Moody's
Risk modeling and the rise of renewables

President Biden’s 2030 goal to halve US emissions relies on expanding renewable energy. As sites grow and move into disaster-prone areas, we are partnering with (re)insurers to provide essential risk modeling solutions.

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blog

Sep 29, 2017

 Moody's
Maria: What is the impact on industry in Puerto Rico?

Hurricane Maria’s impact on Puerto Rico’s industrial sector was significant, with estimated physical damage around $1 billion. Despite this, robust hurricane mitigation practices helped many facilities withstand the storm’s Category 4 winds.

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