RMS News Archive

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	"Crystal Ball Earth: Natural Hazards: Reducing Society's Risks" Earth Magazine December 11, 2009 This byline article featuring Mary Lou Zoback, vice president of earthquake risk applications at RMS, sums the parallels of catastrophe natural hazards with global financial disasters of 2009.
	"CAT Bonds Scratch out Decent 2009" Risk & Insurance December 7, 2009 The latest CAT bonds fit right into optimistic 2009 trends and point to good things to come in 2010. Peter Nakada, managing director of RMS RiskMarkets, refers to the Montana Re deal and explains the collateral agreement for the bond follows the 2009 trend, using a tri-party repo agreement.
	"Swiss Re Issues $75 Million Death Bond for Pandemics (Updates1)" Bloomberg November 24, 2009 The modeling suggests that the probability of this swine flu causing significant deaths is very, very low,” said Peter Nakada, managing director of RiskMarkets at RMS, which performed an analysis for the bond for Swiss Re.
	"Federation of Small Businesses throws lifeline to flood-hit companies" Telegraph November 20, 2009 British businesses which have been devastated by the recent floods and are members of the Federation of Small Businesses (FSB) can apply for interest-free loans of up to £5,000 to help them through the crisis. Elizabeth Couchman, senior product manager at RMS, added that the total damage is likely to be much smaller than the £3bn incurred during the 2007 floods.
	"Overheard: The Unthinkable" Wall Street Journal November 4, 2009 RMS is certainly thinking outside the atmosphere -- In a 17-page report, it estimates a repeat of the 1908 Tunguska event, when a comet or asteroid exploded above Siberia, it could have caused 3.2 million deaths and $1.2 trillion in damages if it occurred over New York.
	"Scottish Floods Cause 'Significantly Less' Damage Than 2007 Storms" The Review November 3, 2009 According to Domenico del Re, director of product management at modeling company RMS, the storms that hit the north east of Scotland at the weekend are indicative of a ‘heavy winter rainfall'.
	"If A Meteoroid Hits Manhattan 3.2 M Die, $1 Trillion Damage Foreseen " National Underwriter November 3, 2009 RMS for its estimate, superimposed the damage footprint of the 1908 event which saw a comet blast 3 to 6 miles in the upper atmosphere above the Tunguska River forest in Central Siberia.
	"Exposure Data Quality – How Good is Good Enough?" Reactions October 19, 2009 Based on portfolio analysis conducted by RMS, Roger Arnemann, vice-president of data solutions, warns that insurers must not be complacent in the belief that their data is good enough.
	"Bring 'Em On?" Risk & Insurance October 1, 2009 The stand-alone terrorism insurance market is open for business. The terror risk is thus solved for corporate risk managers, right? Risk managers, your facilities, employees and customers are safer from terrorism thanks to President Barack Obama's strategies. Dr. Gordon Woo, chief architect of the terrorism peril model for RMS, can't stress enough that he wants this point made plain.
	"Global Awards 2009 Winners Revealed" Reactions September 25 2009 The world's greatest insurers, reinsurers, brokers and service providers were revealed at the Reactions Global Awards 2009 at the Cipriani Wall Street in New York on September 24. In the service providers category, RMS picked up the award for best risk modeling firm.
	"Hemant Shah, President and CEO of RMS, ranked in Top 40 Most Influential" Global Reinsurance Magazine September 2009 Hemant Shah, youngest CEO of the Top 40 Most Influential People by Global Reinsurance. has risen two rankings to 37 since 2008. He is credited with building RMS into a ‘force to be reckoned with’ through his deep technical knowledge of the modeling industry and ability to communicate his products. With “seemingly tireless enthusiasm” Mr. Shah is recognized for having the determination to not only improve the models, but to better convey decisions about managing risk.
	"Catastrophe Modelling - A Matter of Trust" Global Reinsurance Survey September 2009 Catastrophe modeling has come a long way since the late 1980s when it was first applied to underwriting. “It’s not just that people’s expectations have evolved, but the sophistication of the market’s use and understanding has evolved to the point that there is recognition of inherent uncertainty,” says Paul Vandermark, executive vice president of RMS.
	"Microinsurance Has Big Upside" Risk & Insurance September 15, 2009 More insurers look to get involved in microfinance for all the right reasons. But they might also become better, more innovative carriers by the time they're done. Catastrophe modeler Risk Management Solutions Inc. recently completed an analysis, in partnership with the Nanyang Technological University in Singapore, to see if earthquake microinsurance would be viable in rural China.
	"Reactions, RMS Team Up to Provide Cat Data" Reactions September 4, 2009 Reactions has joined forces with risk modeling firm Risk Management Solutions (RMS) to launch the RMS/Reactions Catastrophe Centre.
	"Modeling CAT Bonds: Exploring the Different Approaches" Risk and Insurance September 1, 2009 In this article, RMS explores the potential sources of model differences, from alternative scientific assumptions to varied interpretation of catastrophe bond structures, and how these should be considered to gain insight into the potential variation in risk.
	"A Model View" Reinsurance August 28, 2009 Modeling is central to how reinsurance works. Alex Ferguson talks to Matthew Grant - global head of client development at RMS - and Don Parkes, senior director of business solutions at First American Spatial Solutions about the discipline's development.
	"Understanding Uncertainty in Models" Reactions August 26, 2009 “With each event, with each new version, models do get better as our knowledge increases. However, upgrades to models need to stop being seen as destinations of revealed truth, but as mileposts along a continuum understanding,” says Hemant Shah, CEO of RMS. He thinks modelers have a responsibility to better communicate to users what the models do and what they do not do. Better transparency, he hopes, will encourage insurers and reinsurers to look beyond the PMLs and have a more informed dialogue.
	"Athens Fires Damage 150 Homes In Greece" National Underwriter August 25, 2009 The Athens wildfire situation, which has 150 or more houses damaged, is improving, but there is still a high risk of further flare ups, Risk Management Solutions said.
	"RMS Reports on Hurricane Bill" Insurance Journal August 25, 2009 The latest bulletin from RMS describes Hurricane Bill making landfall in southeast Newfoundland as a weak category 1 hurricane.
	"Are Insurers Doing Enough on Climate Change?" Reactions August 24, 2009 While the growing frequency of severe climate-related natural catastrophes has been well documented, the insurance industry has quickly come to realize that uncorrelated effects associated with climate change pose just as an important threat to the industry. Domenico del Re, director of product management at RMS, says “In a more uncertain world the potential cost of business interruption claims caused by political unrest and disruption to supply chains will be borne by the insurance industry.”
	"RMS Adds, Updates 16 Latin American Quake Models" National Underwriter August 21, 2009 RMS announced it has released 16 new and updated earthquake models for Latin America, focusing on countries with the highest seismic risk and exposure in the region.
	"Fermat Capital Selects RMS MIU Platform To Manage Insurance-Linked Securities" Insurance Broadcasting August 20, 2009 RMS announced the licensing of its Miu portfolio management platform to Fermat Capital, one of the world’s largest investors in insurance-linked securities (ILS), with $2 billion of ILS under management. The RMS Miu Platform allows investors to understand the expected loss as well as probabilities of various levels of loss for portfolios of ILS.
	"Hurricane Bill Worries Insurers" Telegraph August 2009 Insurers were contemplating another season of billion pound losses on Wednesday as Hurricane Bill gathered pace in the Atlantic Ocean. Neena Saith, senior catastrophe response manager at RMS said: “This year’s seasonal forecasts suggest activity will be lower than in the last few years. In terms of the insurance industry, even if there are fewer storms predicted, there is still a sizeable risk as it only takes one large land-falling hurricane to cause billions of dollars in damage.”
	"Hurricane Bill Strengthens to a Category 2 Hurricane" The Review August 2009 Hurricane Bill has strengthened to a Category 2 hurricane in the past 24 hours and continues to track west-northwest across the open waters of the Atlantic. However forecasts agree that Bill is likely to veer away from the US and remain over the open waters of the Atlantic over the next five days. Most of the models suggest that Bill will remain to the west of Bermuda, however there is a chance that Bermuda will be impacted in four to five days time if the track shifts any further east, said modeling company RMS.
	"RMS Unveils New Models For Evaluating Earthquake Risk in North America" Forbes August 2009 RMS has unveiled its next-generation models for North America earthquake risks, covering the U.S. and Alaska, Canada, and Mexico, delivering them to several hundred insurers and reinsurers globally. The new models are likely to lead to a reduction in U.S. earthquake insured loss estimates of 10 to 25 percent for the average insurer across all lines of business, with more modest changes in loss estimates for commercial business lines and larger reductions for residential lines.
	"New Home Designs to Beat the Flood Plains" Times Online August 2009 One in four of our homes is threatened by flooding, the looming crisis is inspiring some radical architectural solutions. Actuaries and hydrologists tried to predict how many properties might be at risk. London-based Risk Management Solutions (RMS) correctly calculated that the number of claims for damage in Hull would be 15 times higher than the Environment Agency predicted.
	"Storm Etau Leaves Destruction In Japan, Taiwan Typhoon Toll Rises" National Underwriter August 2009 Tropical Storm Etau’s torrential rains brought death, landslides and floods, inundating homes and businesses in Western Japan, the Risk Management Solutions modeling firm reported. At least 14 deaths were reported today from the storm, which RMS said had maximum sustained winds of around 40 miles-per-hour, making it a tropical storm on the Saffir Simpson hurricane scale.
	"Earthquake, Storms Batter Southeast Asia" Business Insurance August 2009 A 6.5 magnitude earthquake struck Tuesday near the south coast city of Shizuoka, Japan, causing damage in and around the area, according to modeling firm Risk Management Solutions Inc. At least 69 people were injured and another seven were killed by the quake, said Newark, Calif.-based RMS, which is tracking the event.
	"RMS Gets the Green Light for Florida Model" Insurance Day August 2009 Cat modeler Risk Management Solutions (RMS) has now received certification from the Florida Commission on Hurricane Loss Projection Methodology, allowing insurers to use the firm’s hurricane model for residential rate filings with the local department of insurance.
	"Modeling Firm Now Sees Less Risk From Quakes" National Underwriter August 2009 RMS said its newest catastrophe models for earthquake risks in the United States will likely cut insured loss estimates 10 to 25 percent.
	"U.S. Should Extend Insurers’ Terrorism Backstop, Modeler Says" Bloomberg July 2009 The Obama administration’s plan to reduce the federal subsidy to terrorism-risk insurers will probably trigger volatility in the insurance market, said Peter Ulrich, senior vice president of model management at RMS.
	"UK Flood Defense Spending Must Double to Avoid Disaster " Lloyd's July 2009 The announcement from the Environment Agency was welcomed by RMS, which has just announced the launch of its UK Underwriting Toolkit, designed to help underwriters assess and rate risk for individual buildings impacted by perils such as flood and coastal flooding.
	"Natural Catastrophes Review 2009" Global Reinsurance July 2009 Robert Muir-Wood, chief research office of RMS, discusses the topic of Atlantic Multi-decadal Oscillation (AMO) cycle and it's impact to the growth of hurricane activity.
	"Heavy Rains Trigger Flooding in Central Europe" Insurance Journal July 2009 According to a report from RMS, last week's extremely heavy rainfall, which continued for three days over Central Europe, triggered severe flooding across parts of the Czech Republic, Germany, Poland, Austria and putting Hungary on a high state of alert. However, RMS added that the present flooding "does not appear as severe as the devastating floods of 1997 and 2002 which hit the region."
	"RMS 'Underwriting Toolkit' Provides Instant UK Property Risk Assessment" Insurance Journal June 2009 RMS has launched its "Underwriting Toolkit," which it describes as "designed to help underwriters and pricing managers accurately assess and rate risk for individual buildings impacted by key UK perils - flood, storm surge (coastal flooding) and windstorm. The Toolkit allows property risk to be viewed in a map and quantified in seconds."
	"Carbon Cuts Begin at Home" Telegraph June 2009 Few industries are more at the mercy of climate change effects than insurance. Andrew Cave talks to Lord Peter Levene, chairman of Lloyd’s of London, who reveals how his institution, as well as actively addressing global concerns, is making every effort to put its own house in order to reduce carbon emissions. Last year, this work included a special report on coastal communities and climate change, produced in partnership with catastrophe modeling firm Risk Management Solutions.
	Asia – "The Peak Risk of the Future" Reactions June 2009 Insured catastrophe losses in Asia may still be tiny, but the international insurance industry is beginning to wake up to the region’s prospects.
	"Ringing the Pandemic Preparedness Alarm Bells" Risk & Insurance June 2009 The WHO declared Phase 6, an official flu pandemic, and employers are served their last notice to be ready for H1N1 in their offices.
	"RMS Proposes Micro-Insurance Cover for Cat Risks in Rural China" The Review June 2009 A micro-insurance system could be technically and commercially viable to cover earthquake risk in rural China, said catastrophe risk manager RMS.
	"Hurricane Season Begins" CNBC May 2009 Neena Saith, senior catastrophe response manager at RMS, appears as a guest on CNBC Europe talking about this year’s hurricane season and what it could mean for the insurance industry.
	"Catastrophe Experts Praise Introduction of National Backstop --Call Homeowners' Defense Act of 2009 a Critical First Step in Protecting American Families" CNBC May 2009 According to RMS, the nation's foremost authority on catastrophic risk, 57 percent of the American population currently lives in areas that are prone to natural catastrophes.
	"Cat Bonds Storm Ever Closer to $1.5bn Threshold Ahead of US Wind Season" The Insurance Insider May 2009 Swiss Re is the latest to come to market, with its third cat bond on behalf of ACE American Insurance Co – the $100mn US wind and quake transaction Calabash Re III Ltd. RMS will provide the modeling on the notes, which are triggered by a mixture of a PCS industry loss index and modeled loss.
	"LA Hit by Two Quakes in 48 Hours" Insurance Day May 2009 According to the latest RMS catastrophe update, there are no reports of any major structural damage; however, there are reports of light contents damage in locations close to the epicenter where the shaking caused ceiling tiles to fall in the South Bay Galleria and objects to fall off shelves in other buildings.
	"Brazil Floods are Worst for Two Decades" Insurance Day May 2009 The death toll in northern Brazil is continuing to rise as a result of the worst flooding to hit the region for two decades. According to the latest RMS catastrophe report, two of the worst affected states are Piaui and Maranhao in the northeast of the country.
	"ILW Trading Volumes Shrink 70% on 2008" The Insurance Insider May 2009 Munich Re and Tokio Marine Nichido Fire also traded a $50mn private cat swap based on RMS’ Paradex-Europe Windstorm index in April.
	"$150mn Ibis Re Cat Bond Takes Flight" The Insurance Insider May 2009 Specialty US property insurer, Assurant Inc., has successfully launched its first cat bond - the $150mn US wind bond Ibis Re Ltd Series 2009-1. RMS provided risk modeling on the bond, triggered by PCS estimates on US hurricane losses.
	"Bonding With a Reliable Market" Risk & Insurance May 2009 Peter Nakada, managing director of RMS Consulting, speaks optimistically about the catastrophe bond market to be on the verge of something big, now that it survived the financial crisis and the property-catastrophe reinsurance market is tight.
	"BestDay Audio for Wednesday, April 29: Maura Sullivan of RMS on Swine Flu Virus" A.M. Best April 2009 Maura Sullivan, epidemiologist at the research department of RMS, discusses the impact of the Mexican swine flu virus.
	"Weather Warning" Insurance Times April 2009 Matthew Nielsen, product manager at RMS, speaks about the degree of early season activity and its amplifying losses.
	"Studies Support Florida Property Insurance Bills" Sun Sentinel April 2009 In this article from Sun Sentinel, a summary of the RMS study shows that every $1 invested in fortifying homes against hurricanes reduces the cost of hurricane damages by about $1.50.
	"1 in 4 Homes Damaged by Italian Quake Says RMS" Insurance Journal April 2009 In this article from Insurance Journal, RMS states its data shows that just 20 percent of homes were built after 1980 when new earthquake building codes were introduced to make properties more resistant to ground shaking.
	"State of Fear" The Economist April 2009 In this article from The Economist, Mary Lou Zoback, vice president of earthquake risk applications, discusses the likelihood of a future large scale California earthquake, as well as the total estimated loss.
	"Major Earthquake Devastates Central Italy" The Wall Street Journal April 2009 In this article from The Wall Street Journal, Robert Muirwood, chief research officer at RMS, estimates the damage from Monday's quake at "certainly in the billions" of euros.
	"When Sport is the Target" Insurance Times April 2009 In this article from Insurance Times, Gordon Woo, terrorism expert at RMS, reflects on the terrorism attack on the Sri Lankan cricket team in Lahore and how the face of terrorism is changing.
	"Insurance-Linked Securities: Last Asset Class Standing" Insurance, Finance & Investment March 2009 For the past decade, RMS, along with other proponents of catastrophe bonds, has been touting the asset class as ”one of the few investments not linked to the global economy.”
	"RMS Adds Stephan as CTO" Insurance Day March 2009 In this article from Insurance Day, RMS appoints Philippe Stephan to the newly-created role of chief technology officer (CTO).
	"C-Level Agenda," Best's Review March 2009 Ajay Lavakare, senior vice president and managing director of data solutions at RMS, speaks about exposure data quality as a key indicator of operating risk. Please note that the article must be reproduced in its entirety, as published, without change or alteration in text. Best’s Review: December 2008 (Copyrighted A.M. Best Company, Inc. 2009. All Rights Reserved, Reprinted with Permission).
	"A Model Manifesto," Reactions March 2009 In this article from Reactions' CEO Risk Forum 2009, Hemant Shah, CEO of RMS, addresses questions raised about financial models in the wake of the banking crisis and discusses the need for a change in attitude from the modeling community.
	"Terror Threats Strain Insurance Capacity," Best Week Asia/Pacific March 2009 In this front page article with BestWeek Asia/Pacific, Dr. Gordon Woo, terrorism risk expert at RMS, speaks about insurers' awareness of heightened risk to soft commercial targets in the major cities.
	"Winter Storm Risks Tough To Anticipate," National Underwriter March 2009 Thomas Foster, product manager, looks at the challenges of quantifying winter storm risks and the ways buildings react during winter storms.
	"Maintaining Insurability in a Changing Climate," Insurance Risk & Capital February 2009 Celine Herweijer, director of climate change, speaks about ways to address the higher and more volatile climate risks, which can cause increasing numbers of people and properties to become uninsurable.
	"Flood Rage," Broker's Monthly January 2009 Elizabeth Couchman, senior product manager, speaks about the UK Flood Model and raising awareness of the need to take account of surface water flooding.
	"Under Starter's Orders," Trading Risk January 2009 John Stroughair, vice president of capital markets, and Ben Brookes, director of capital markets, look at the pros and cons of indemnity and parametric triggers and ask what is hindering the growth of the ILS market.