Global catastrophe risk modeller, RMS, has released RMS RiskAssessor™ 2.0, enabling insurers and reinsurers to obtain a more distinct and expansive view of hurricane risk.
RMS describes the engineering-based technology as “the first auditable custom vulnerability modeling solution,” which, enables the re/insurance industry to produce a more “distinct” and “expansive” view of hurricane risk in real-time.
RMS RiskAssessor™ 2.0 should give re/insurers an enhanced underwriting process and risk management process, and has been developed so that firms can integrate their own view of vulnerability into their modeling workflows, says RMS.
Michael Young, senior director, product management at RMS, commented; “Insurance companies today face an intensely competitive market that requires a more informed approach to pricing and risk differentiation, however, today’s catastrophe models face limitations. Our clients want to distinguish themselves from the pack and with RiskAssessor™ 2.0 they have the opportunity to represent their own unique views to enhance their insights and maximize profits.
“RiskAssessor™ 2.0 brings a fully featured ability to embrace custom vulnerability modeling for the key peril of Atlantic hurricane risk that companies have not had before, and we look forward to expanding this capability to other perils and regions in the near future.”
The risk modeller explains that the open vulnerability element of the new tool enables insurers and reinsurers to do one of two things:
“Companies that are investing in detailed loss control inspections can turn proprietary inspection data into actionable risk assessments or pricing decisions via the 56 distinct wind-related variables and the RMS virtual wind tunnel technology included in RiskAssessor™ 2.0.
“Other companies may choose to take advantage of the flexibility of the custom vulnerability modeling framework to create new classes of risk tuned to their unique business profiles.”