Brazilian reinsurer, IRB Brasil RE, has licensed RMS’ China and India agricultural models in an effort to expand its presence in the global reinsurance market.
Global catastrophe risk modeller and analytics firm, RMS, announced recently that IRB Brasil RE has licensed the RMS® China Agricultural Model and RMS® India Agricultural Model, as the reinsurer looks to strengthen its position in the Asia-Pacific region.
The risk models will provide the reinsurer with a holistic view of exposures so that more accurate regional analytics can be produced, ultimately facilitating risk transfer.
Senior Director, Model Product Management, RMS, Laurent Marescot, said; “Today’s actuarial techniques to manage agriculture risk are increasingly challenging to use, whether that’s employing non-stationary trends in data and a limited historical loss record or keeping abreast of the changes in agriculture management practices and climate evolution.
“That today’s models must address a broader range of industry needs is key as we continue to expand our suite of RMS Asia-Pacific and global agricultural risk models to help enhance the risk management chain as a whole, from underwriting to portfolio management.”
RMS’ China solution can model all insurable products, which is more than 70 crops, and also forestry and livestock, explains RMS. With global companies looking to participate in China’s agricultural insurance sector, the model includes a vast database that provides the latest insurance terms and conditions, which can vary by location and business line.
The risk modeller’s India model provides greater understanding of more than 70 crop types in two seasons and is also compatible with the Indian government’s Pradhan Mantri Fasal Bima Yojana (PMFBY) scheme, introduced in 2016.
Head of Agriculture at IRB Brasil RE, Miguel Fonseca de Almeida, commented; “To better compete with reinsurers in the Asia-Pacific reinsurance market, it is crucial that we employ the most advanced and up-to-date modeling and analytics solutions. The RMS China and India Agricultural Models provide us with the necessary foundation to better understand and manage risk in our international agriculture portfolios and will enable us to maximize our global business profitability.”
For IRB Brasil RE, the models enable the company to gain a competitive edge in the Asia-Pacific region as it looks to expand its global agriculture portfolios, providing the reinsurer with the tools to participate in the Chinese and Indian agricultural insurance sectors.
Victor Roldán, Regional Head for Latin America at RMS, added; “The RMS China and India Agricultural Models are the first of their kind and will enable our clients in the Latin America region and around the world to take advantage of the significant growth opportunity presented by this segment.
“Empowered with the only China and India agricultural models that can offer umbrella and whole accounts in portfolio analyses, our clients will benefit from superior portfolio analytics capabilities to support better risk management practices.”