Cumulative Loss Modelling project - Phase 3

Details

The Auckland Council Group has commenced a piece of work to better understand our exposure to natural hazards. This has started with an assessment of the consequences of earthquake shaking and floods on our assets (phase 1 desk assessment and phase 2 deterministic modelling using Riskscape2).
The intent of this project is to inform our decision making around risk-based insurance. We anticipate that the outputs will also be used for decision making around asset resilience and investment.
Auckland Council is the largest local government organisation in Australasia, the chosen supplier will have the opportunity to work on an exciting project that will help shape the future of New Zealand’s largest city. The modelling is for both under and over ground assets with a total value of around NZ$42Billion. The Auckland Council Group owns many types of assets from roads and public transport infrastructure to buildings, and 3 water related assets and infrastructure. The Auckland Council Group currently comprises Auckland Council, Auckland Transport, Tātaki Auckland Unlimited, Eke Panuku Development Auckland and Watercare.
This Expression of Interest is intended to identify suitable partners for the next phase of this project, starting in July 2024, where we will introduce the following additional hazards into the modelling:
• Earthquake (liquefaction and surface rupture)
• Tsunami
• Landslide
• Volcano
• Climate change
It is expected that probabilistic modelling be conducted where possible. The modelling must be performed using systems and tools that the international insurance market trust. Outputs must be presented in a format that can be readily shared with our insurers and stakeholders from across the Auckland Council Group.
Detailed loss modelling for this range of hazards and Council Group assets has not been performed before, and so the vendor has the opportunity to shape the methodology used for the initiative.
In addition, this project is unlikely to be a one-off exercise. As Auckland is a growing city the levels of risk, damage and loss will need to be reassessed in the future, and therefore there are opportunities for a long running relationship with the Council Group.