Catastrophe risk modeller, KatRisk LLC has announced updates to its SpatialKat 2.0 and SoloKat+ software and data, further enhancing its sophisticated cat modelling engine and financial model.
KatRisk has revealed a range of updates, noting the firms’ ability to quantify U.S. flood risk, both inland and storm surge, by leveraging its data and probabilistic models.
Today, the company’s data and models are utilised by a growing base of insurers, reinsurers, brokers, and also the Federal Emergency Management Agency’s (FEMA) National Flood Insurance Program (NFIP), to quantify risk.
KatRisk is the third-party modeller for FEMA’s NFIP catastrophe bond series, the latest of which, FloodSmart Re Ltd. (Series 2019-1), is scheduled to be completed next week.
As part of the latest update release, SpatialKat 2.0 now has the ability to model multi-location account policies, including policy special conditions and min/max deductibles. Facultative reinsurance can now be modelled at the site, policy and account levels, with Treaty reinsurance expected to be released in the summer.
Multi-location sites can now also be modelled, and the financial model can handle numerous financial terms that are modelled at the site level, such as coverage and site terms.
KatRisk’s Chief Executive Officer (CEO), Dag Lohmann, explained that its “user guide comes with complete flowchart illustrating the calculation flow for the financial model. Assuming a 100% loss ratio, calculations for an Exposed Limit analysis takes only a minute for millions of locations for each level (site, policy, account, portfolio) and financial perspective (ground up, gross, net) as well as facultative insurance policies.”
Other major features of the latest SpatialKat 2.0 release include: building footprint capabilities for inland flood; addition of industrial and auto vulnerability curves; historical hazard data since 1900 for wind and surge, as well 18 significant inland flood events.
Furthermore, and to assist with the comparing of losses to its economic data, the firm’s included an event metadata file, which Lohmann explained provides “fields related to event characteristics, climate states, and state level loss statistics.”
SoloKat and global inland flood updates have also been announced by KatRisk, and this includes historical footprints of 18 events, a new Global Event simulation mode, and the addition of building footprint loss methodology, as well as additional industrial and auto vulnerability curves.
“Correlation with hurricanes, climate variability, sea level rise, model sensitivity, global correlations with teleconnections – it is all included on top of the fastest (by far by the way) cat modeling engine and financial model. We show our flood maps, we give people access to all the data in our models, we let our users decide what they want to change,” said Lohmann.