Guy Carpenter, the reinsurance broking arm of Marsh & McLennan Companies, Inc., has agreed to license the catalogue of natural catastrophe models, execution software and analytics from risk modeller Karen Clark and Company (KCC).
This multi-year agreement will provide Guy Carpenter’s clients with access to KCC’s suite of natural peril models, software, visualisations and scientific approaches.
In combination with Guy Carpenter’s own expertise in model science, the broker believes the agreement will enable it to provide its clients with greater innovation and control.
The KCC models reside on the RiskInsight platform, which provides a suite of tools including high-resolution interactive maps, real-time event tracking and custom model building.
Notably, Guy Carpenter is the first intermediary to obtain access to KCC’s RiskInsight and its risk metrics and capabilities
“Across our industry, practitioners are actively reassessing the costs, technical foundations, business utility and vendor relationships underpinning the existing cat model ecosystem, as long-held views of modeled risk are challenged,” said Rob Bentley, CEO, Strategic Advisory at Guy Carpenter.
“We firmly believe that at a time of industry change, our partnership with KCC represents a meaningful step-change in giving our clients choice along with experienced advisory support as they consider and embrace a different future.”
Karen Clark, CEO of KCC, also commented: “The KCC team is committed to innovation, transparency, accuracy, and client centricity. The KCC models produce loss estimates our clients have confidence in, and the RiskInsight modeling platform delivers unique risk metrics for deeper insights into large loss potential along with a comprehensive suite of high value applications.”
“Over the past several years, KCC has partnered with market-leading (re)insurers who have informed this advanced modeling technology, and we’re looking forward to this new partnership with Guy Carpenter and the potential it brings to their extensive global client base,” Clark continued.
Peter Hearn, President and CEO of Guy Carpenter, further stated: “KCC and Guy Carpenter share the view that the (re)insurance industry is now ready for a paradigm shift in the current approach to catastrophe modeling. The partnership that we have announced today provides the platform from which we can now expedite the inevitable and desirable changes in the catastrophe modeling industry.”