Current insurance-oriented approaches for assessing building seismic risk are calibrated from past earthquake data and expert opinion. These data and judgments are limited (e.g. there have been no large urban earthquakes in the U.S. since 1994) and are expressly not building specific.
A detailed building-specific engineering analysis would offer greater insights, but is typically cost prohibitive or not feasible given available data on the property.
SP3 was created to provide better building-specific risk information. An SP3 assessment can be done for any level of input data, from a few basic parameters such as property age and size, to a full engineering assessment with structural analysis. These insights can be used to tailor building-specific underwriting decisions, study sensitivity of losses to building features, or incorporated within broader portfolio risk analyses.