Simplitium, a provider of risk analysis services, has partnered with Fathom, a global flood model provider formed out of the University of Bristol Hydrology Research Group, and has commissioned the wind hazard maps of UCL Space & Climate Physics researchers.
The flood and wind hazard data sets provided by the teams at these institutions will allow Simplitium to better assess weather-related catastrophe risks, and will be made available through ModEx, the company’s independent multi-vendor catastrophe risk modelling platform.
ModEx operates on the Oasis Loss Modelling Framework (LMF) and bridges the gap between re/insurers and model vendors to provide the industry with easier access to risk modelling.
According to the United Nations International Strategy for Disaster Reduction, 31% of global economic losses due to natural hazards are caused by flooding, and could affected 54 million people and cost up to $521 billion per annum worldwide by 2030.
Simplitium plans to respond to this growing risk by leveraging Fathom’s advanced global flood maps, which deliver a resolution of up to 30 metres, and by developing a probabilistic U.S inland flood model, which is to be made available through its ModEx platform later this year.
Andrew Smith, Chief Operating Officer (COO) at Fathom, said: “Fathom represents the very latest in comprehensive flood modelling capability and we are hopeful that the flood maps and model’s availability on the ModEx platform will enable more (re)insurers to access this new technology.
“As a team of scientists, we feel that transparency and validation of models is critical in delivering a high-quality tool. That is why we are excited to work with Simplitium and Oasis, whose values we feel align very well with ours.”
Windstorm is also one of the most expensive natural perils for UK re/insurers, having contributed to 45% of UK household weather-related insurance claims between 1998 and 2013, according to the Association of British Insurers.
Utilising UCL’s UK wind hazard maps will allow Simplitium to provide clients with UK-wide hazard maps that deliver nearly 2,000 times better spatial resolution than other currently available models, which will allow UK insurers to more accurately price policies and save on claims payments.
Mark Saunders, Professor of Climate Prediction at UCL, commented: “We are delighted to be offering our UK 100m resolution windstorm data through Simplitium and its ModEx platform. Our data allow the substantial small-scale perturbations in wind hazard to be resolved for the first time.
“In keeping with the Simplitium service ethos of simplicity, efficiency and transparency, we provide clarity in methodology, accuracy and presentation. We know that Simplitium is a straightforward, reliable and, above all, efficient company to engage with for delivering new natural hazard risk data and services to the insurance industry.”
James Lay, Commercial Director of Insurance at Simplitium, added: “As we move through 2018, ModEx looks to expand its availability of cat models and hazard maps, providing our clients with the tools they need to make more informed portfolio decisions.
“One of our aims with ModEx is to facilitate new model development. Fathom and UCL’s commitment to develop models based on rigorous academic research makes them ideal partners. We look forward to working with Fathom and UCL Space & Climate Physics researchers as we take yet another step towards our goal of providing the industry with a better understanding of risk.”
