AIR Worldwide, the catastrophe modelling arm of Verisk Analytics, has announced that it will partner with RenaissanceRe (RenRe) to develop the re/insurance industry’s first probabilistic model for extreme liability events.
As part of the collaboration, AIR Worldwide plans to use Arium, its exposure management application, to measure portfolio-specific loss potential and judge exposures to emerging risks and projected events using simulated scenarios.
Ian Branagan, Senior Vice President and Group Chief Risk Officer at RenaissanceRe, said: “Since our inception, RenaissanceRe has been at the forefront of applying science, engineering, and data to inform our independent view of risk.
“Incorporating third-party expertise from proven leaders such as AIR wherever appropriate is a key part of this process. We’re pleased to work with AIR to advance our industry’s ability to better understand how to model and manage casualty and specialty risk.”
Dr. Jay Guin, Chief Research Officer at AIR Worldwide, also commented: “We’re currently developing the industry’s most comprehensive model of liability risk to help companies understand the complex interconnections in their portfolios, resulting in a comprehensive assessment of potential future losses.
“Collaborating with a global leader in risk management like RenaissanceRe is a great step forward in the development of our stochastic model. This model provides a forward-looking view of risk and will enable insurers and reinsurers to capture the full distribution of the frequency and severity of casualty catastrophes.”
Additionally, Robin Wilkinson, Vice President and Managing Director of Casualty Analytics at AIR Worldwide, said: “Arium is a powerful exposure management application designed to help companies evaluate liability accumulations and run casualty risk scenarios.
“With Arium, insurers can analyze and quantify their exposure to simulated liability events and become more informed on what types of future events could cause significant losses to their portfolios. As Arium continues to evolve, the stochastic model will enable companies to understand and manage their casualty risk more thoroughly.”
