What is Catastrophe Risk?

Over the last decade catastrophe modeling technology has become a vital tool for quantifying, managing, and transferring risk in the insurance industry. In a sector where financial stability is the hallmark of leading firms, the need for complete portfolio management of natural hazard risks was highlighted time and again by major catastrophes. Hurricane Andrew in Florida, the Kobe Earthquake in Japan, the Northridge Earthquake in California, and Windstorms Lothar and Martin in Europe, all served as reminders to insurance markets that catastrophe risk should be proactively underwritten and managed.

Any company with financial assets exposed to catastrophes can benefit from catastrophe modeling. Insurers, reinsurers, brokers, financial markets, and corporations have all recognized the need to synthesize available scientific research with quantitative techniques to evaluate the probability of financial loss. RMS catastrophe models accomplish this objective.

RMS pioneered the development of catastrophe models for insurance markets in the late 1980s, focusing on event-specific probabilistic modeling to quantify risk for individual locations and for portfolios of aggregate risk. Today, RMS provides catastrophe modeling solutions to more companies than any other organization.

Risk Models

RMS models are the standard for quantifying catastrophe risk in countries all over the world. RMS offers catastrophe models in over 40 countries, allowing underwriters to confidently price risk and analyze the probability of loss in regions with the highest exposure.

Software

RMS software products provide the user interface and desktop analysis capabilities to meet the needs of catastrophe managers and analysts in insurance markets. Companies use our software tools to capture exposure data, analyze risk for individual accounts or portfolios, monitor risk aggregates, and set business strategy.

Data Products

RMS data products are designed both for site-specific underwriting and for portfolio management applications. RMS offers a range of property risk and exposure information, including hazard risk data for individual locations and exposure data covering aggregate building inventory and insured values.

Consulting

RMS risk and technology consulting services provide clients with customized solutions and expanded consulting resources to meet specific business objectives. Our consultants leverage company-wide resources to structure and manage projects that complement our catastrophe product offerings.

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