Tag Archives: Exposure Manager

Hurricane Irma: The Exposure Variable

11:00 UTC  Thursday, September 7

Rhett Austell, director – Client Solutions, RMS

In the days leading up to landfall for a major hurricane such as Irma, you will find RMS employees and clients glued to their devices. We are all reading weather blogs, studying RMS HWind snapshots, monitoring Twitter, and sharing each other’s projections and observations on LinkedIn. This is all to get the latest view on a dynamic system – what is the maximum sustained wind? What is the Rmax? Central pressure? What is the integrated kinetic energy?

In such a dynamic situation, it is important to also consider what is static: the concentration of exposure within the hurricane uncertainty cone. In the most general sense, the industry insured loss for such an event is a function of the physical characteristics of the storm and the scale of exposure that is impacted. As has been stated elsewhere on the RMS blog, loss scenarios will vary significantly depending on the concentrations of exposure underlying the event footprint. For hurricanes, a few miles can be the difference between a footnote on a quarterly earnings statement or front page headlines. This was the story last year with Hurricane Matthew after it “wobbled” to the east and spared much of southeast Florida.

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Harvey Shows the Advantage of Cloud Solutions When “Time to Insight” is Crucial

Farhana Alarakhiya, vice president – Products, RMS

Hurricane Harvey continues to be top of mind at the RMS offices. On Wednesday, RMS hosted a client webinar where Mark Powell, Tom Sabbatelli and Pete Dailey discussed how we have applied our methodology developed for the RMS U.S. High Definition (HD) Flood Model to provide insights to the extent and severity of the flooding from Harvey, with Houston as our top priority. This effort has resulted in a high-fidelity hazard inundation map which is now available to all RMS clients.

For clients on the RMS(one)® platform who use Exposure Manager, this effort goes one step further. We automatically seed the Harvey hazard layer in the client tenant, to deliver instantaneous access to analytic insights from the U.S. Inland Flood HD Model.  This models all sources of flooding across space and time, and can also be used to identify and differentiate locations at risk based on flood extent and severity.

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Customers Adopt Solutions on the RMS(one) Platform

Exposure Manager, the first solution on the RMS(one)® platform, launched in July and has created great momentum in the market.

Insurance and reinsurance firms using Exposure Manager gain a clearer view of risk accumulations. With insight into their diverse set of exposures in both modeled and non-modeled regions, they are able to better manage exposure concentrations, and can help avoid private catastrophes.

Today, we announced that Mitsui Sumitomo Marine Management has chosen Exposure Manager to strengthen its risk accumulation management, taking a “big data” approach for dynamic exposure management. They are among the first in a wave of companies to adopt Exposure Manager to minimize blind spots in their risk portfolios.

Since July, we’ve been previewing some of the other solutions due out on the RMS(one) platform – from one-on-one meetings with clients leading all the way up to the main stage at Exceedance 2017 (registration is now open!). Our customers are in various stages of evaluating and adopting RMS(one) solutions and are excited to capitalize on the advantages that these solutions will bring.

As one of the many ways we are helping customers along their adoption journeys, we recently held our first Hack Event, Powered by RMS(one). Our customers in the London market attended a full-day session to understand their options, choose the right solution for their business goals, and map out adoption strategies. Due to the event’s success, we will be holding additional Hack Events in the coming months as we march toward releases for a full suite of solutions on the RMS(one) platform.

We will share more as customers continue to implement solutions on the RMS(one) platform and realize business benefits as we all work toward a common goal of building a more resilient global society.

Learn how to build portfolio intuition faster and access metrics that matter with Exposure Manager.

What could be your exposed limit loss to Major Hurricane Matthew?

Hurricane Matthew is currently moving along the Florida coast with high winds, heavy rain, and a large surge. But as early as three days ago RMS clients were estimating their exposed limit in the path of the storm. How was that analysis generated?

On Thursday October 6 an RMS Exposure Manager analysis of the RMS 2011 Industry Exposure Database (IED) was performed. It found approximately $2.77 trillion of total insured value (TIV) exists within ZIP codes that had a five percent likelihood of experiencing hurricane-force winds – as forecast by the National Hurricane Center (NHC) while the storm was still a long way from the U.S. coast.

Clients were able to feed in insights from the RMS Event Response team to understand the breadth of potential industry losses. Even based on these early forecasts, it was clear this could be a significant event, as you can see from these videos.

Description:  An accumulation analysis is performed against the RMS Wind IED based upon a view of postal codes, as of October 6, that have 5% probability or greater of experiencing hurricane force wind.

But whilst understanding how much the industry is exposed is important to a portfolio manager, understanding how much their own organization could lose is critical. This next video shows how clients used RMS Event Response output on October 6, two days before projected landfall, to quickly produce a range of exposed limit estimates by applying varying damage factors.  With this insight, clients could understand how much exposure they have within the path of the storm using the RMS Financial Model in Exposure Manager.

Description:  An accumulation analysis is performed against an E&S portfolio to calculate exposed limits using various damage ratios based upon a view of postal codes, as of October 6, that have 5% probability or greater of experiencing hurricane force wind.

Description:  An accumulation analysis is performed against an E&S portfolio to calculate exposed limits using a shape file from the National Hurricane Center, which shows areas potentially affected by hurricane force surface winds (1-minute average <= 74mph) banded by probability.