Tag Archives: RMS(one)

Exceedance 2017 – Coming in Just a Few Weeks!

It’s hard to believe but Exceedance 2017 will be here in just a few weeks, and the excitement is building!

Exceedance_6Feb2Many companies are sending their cross-functional teams to fast track their ability to put new capabilities to work. And with good reason. With the releases of Risk Modeler on the RMS(one)® platform and Version 17 in April, attendees will experience more tracks (22) and more sessions (105) than in previous years.

There will also be many opportunities for interaction with model experts, up close team training, networking opportunities, and so much more. Enabling your success is the driving force behind Exceedance!

Here are some highlights of the topics we are preparing for you and your team:

  • Risk Modeler powered by RMS(one): You will obtain a deep understanding of the modeling and analytics that provide the core of the Risk Modeler workflow, including setting up analyses, creating structures and positions, and accessing models from multiple RiskLink® versions for key use cases such as change management, modeling reinsurance programs, and analyzing insurance portfolios.
  • Version 17 North America Earthquake: The changes to the North America Earthquake Models represent the latest view of risk across the U.S., Canada, and Mexico. We will provide the full scope of the update by delving into the model components, including our unique implementation of the latest source models from the USGS, directional loss changes by region and line of business, and detailed loss change exhibits.
  • Event Response: How did your business respond to Hurricane Matthew? Learn what we are doing to enhance RMS Event Response, including future offerings, making it work for your business, addressing the main challenges faced during a real-time event like Hurricane Matthew, and more.
  • U.S. Flood Model: Flood risk management is becoming an increasingly important peril to manage for the insurance industry in the U.S. We’ll provide the latest details on all model components, including the simulation-based model methodology, the innovative vulnerability components of the upcoming RMS U.S. Flood HD Model, and how best to capture opportunities in the evolving U.S. flood market.

The Lab at Exceedance: Solutions, Model Releases, and In-Depth Training with RMS ExpertsExceedance_6Feb

The Lab will be packed with our latest modeling and software releases, in addition to special areas dedicated to research from Horizons (RMS scientific publication) and resilience initiatives across the globe. Over 50 RMS scientists and modelers will be in The Lab to offer technical insights, training, and support – and will be available for personalized discussions.

There’s a Lot to Be Excited About

This is an important year for all of us in the industry, and RMS is ready to meet our commitments to you as we remain on track for a full schedule of delivery throughout 2017. If you’re attending, be sure to let your colleagues know about all Exceedance has to offer.

To see the full agenda with information about the tracks and sessions, The Lab, speakers, networking events, and more, visit the conference website at: exceedance.rms.com. You can also register for Exceedance here. Look for our next blog with more exciting Exceedance updates in the coming days!

Exceedance 2017 Sessions Have Been Announced

As our event team and subject matter experts continue preparing for Exceedance 2017 in New Orleans on March 20-23, we have announced the sessions for this year’s event.

With the release of Risk Modeler on the RMS(one)® platform and the Version 17 models in April, the Exceedance 2017 agenda is strongly focused on providing attendees with training and enablement that will strengthen their company’s operational effectiveness, agility, and resilience, and create new growth for their business.

 

 

Twenty-two tracks with 105 Sessions Focused on Software, Model Releases, and More

Each of the 22 tracks provide a deep dive into our 2017 modeling and software releases. Attendees will have the unique opportunity to learn, train, and interact with RMS and industry experts. They’ll come away with actionable insights into new model releases and software updates.

Selected track highlights include:

  • Version 17 North Atlantic Hurricane Model changes. The Version 17 North Atlantic Hurricane Model update spans from the Caribbean to Hawaii. It incorporates RMS reconnaissance and local market studies across regions, plus additional updates in the U.S. This track will hone in on the advances made since Version 15.
  • Version 17 North America Earthquake Model changes. The changes to the North America Earthquake Model are the most important in a decade and deliver the latest view of earthquake risk across three countries. Understanding the model changes will be critical to ensuring that today’s view of risk is brought to market in a timely manner.
  • New tools and solutions to help own your view of risk. Today’s view of risk is ever-evolving, and this track will focus on new solutions, tools, and key insights to address key market needs, including using RiskAssessor™ with Version 17 models.
  • High-definition modeling capabilities. High-definition (HD) models deliver the latest science and modeling capabilities beyond those currently available in the industry. Attendees can get hands-on with new HD models and understand the valuable enhancements they provide.
  • Exposure data, financial structures and positions on the RMS(one) platform. Learn how to manage your exposure data and financial structures and positions on the RMS(one) platform.

If you would like to learn more about all 105 sessions there’s more information here. To register for Exceedance, click here.

With 22 tracks, 105 sessions, and many opportunities to engage with RMS and industry experts to discuss your business imperatives and strategies, Exceedance 2017 is not to be missed. This year’s event offers the chance to join the discussion, learn more than ever before, and get a head start in the marketplace. Look for our next blog in the coming days!

Indonesia’s Protection Gap – How the Sumatra Earthquake Shows that Coverage Must Spread

On December 7, 2016, a shallow magnitude 6.5 earthquake struck northern Sumatra in Indonesia, severely damaging or destroying more than ten thousand homes and many businesses, as well as causing over a hundred deaths. The disaster struck a poorer area away from the major cities, where the standards of building design, construction methods, and material quality are not sufficient to withstand such an earthquake.

sumatra1

USGS Shake map for Mw 6.5 Earthquake

We have up-to-date research on local building design and construction practices in Indonesia, which we have incorporated into the latest version of the RMS® Indonesia Earthquake Model. This research was done last year when members of the RMS vulnerability team, including me, visited southeast Asia as part of the process to update the model. We held workshops with local earthquake engineering experts who practice there, and attended an earthquake engineering conference, as well as visiting commercial and industrial buildings, including those under construction, to see first-hand how they were designed and built.

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A workshop with local experts

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International Conference – Jogja Earthquake in Reflection (May, 2016)

This on-the-ground research provided insights into Indonesia’s rules and practices around construction, seismic design, code enforcement, as well as information on the relative quantities of different types of buildings in the country. We discovered significant differences between mainstream construction and those buildings covered by earthquake insurance, namely:

  • Past earthquakes have demonstrated that single family dwellings and/or low rise buildings are the most vulnerable building types compared to those built for commercial and industrial use, because of a lack of engineering design, poor construction, and lower material quality.
  • Buildings outside of major cities are mostly low rises and they may not be designed for earthquake risk.
  • Major cities such as Jakarta, Bandung, and Surabaya enforce a strict structural design review process for the construction of mid- and high-rise buildings.
  • Insurance penetration rates are higher for commercial and industrial buildings in and near major cities, with much lower penetration for residential properties in rural areas.

It’s perhaps not surprising that if poorer communities have less insurance protection, that they also cannot afford to invest in the higher quality construction that is designed to better withstand earthquakes. This is one of the primary reasons for the ‘protection gap’. As these countries become more developed, there’s the potential for that gap to start closing. In fact, Indonesia is one of the fastest growing economies in southeast Asia, with the property insurance and (re)insurance market expanding rapidly.

But as the earthquake disaster demonstrated, there are still many poorer regions with low insurance penetration which are also prone to repeated natural disasters. Sadly, there is still a long way to go before people in those places benefit from the resilience in their built environment which other, richer parts of the world may take for granted.

Exceedance 2017 Is Coming to New Orleans!

Welcome to the first in a series of blogs leading up to Exceedance 2017, March 20-23.

We’re looking forward to the event, which will be held at the Hyatt Regency New Orleans. Situated less than a mile from the historic French Quarter, and about a mile-and-a-half from Jackson Square, it’s a great location in the heart of the ‘Big Easy.’

This year’s theme, ‘Create Resilience,’ reflects the strength and spirit of New Orleans, including the tremendous progress made in the ten years since the devastation caused by Hurricane Katrina. Exceedance 2017 will emphasize how innovation, analytics, and ingenuity can create more resilience in our global catastrophe risk management practices.

Hands-On Training for Risk Modeler on the RMS(one) Platform and Version 17

With the release of Risk Modeler on the RMS(one)® platform and Version 17 upcoming in April, this year’s Exceedance schedule is focused on training and enablement. It’s the only place to get key insights into these new RMS releases – and be trained to assess risk more effectively.

Exceedance2017Exceedance will feature over 22 speakers and provide many opportunities to dive deep into more than 20 new models, including North America Earthquake, North Atlantic Hurricane, and major advances in science, software, and HD-simulation models.

The agenda is designed to provide attendees with all the information they need for our new solutions developed for a rapidly changing market. Solutions that will increase operational effectiveness, agility, resilience, and business growth.

Take Some Time to Have Some Fun

Along with experiencing all there is to see and learn at Exceedance, there are plenty of opportunities to relax and have some fun with the following pre-conference activities:

Golf at TPC Louisiana: Enjoy a round at TPC Louisiana, rated one of Golfweek’s “Best Courses You Can Play.” It’s a great place for you and your colleagues to experience a one-of-a-kind day on a championship golf course.

Tour the Lower 9th Ward: Join the Make It Right Foundation for a walking tour of the Lower 9th Ward. You’ll experience first-hand how innovative partnerships and community-led design sessions are transforming the neighborhood that was most devastated by Hurricane Katrina.

Horse-Drawn Carriage Ride and Cooking Class: Journey through the French Quarter by carriage, where you’ll pass through the city’s eighteenth- and nineteenth-century French and Spanish architecture. Then, satisfy your appetite with chef extraordinaire Amy Sins who will guide you through an interactive culinary experience that ends with a delectable meal.

Spirits and Spirits – an Evening Tour: Take a guided evening stroll through the spooky side of the old French Quarter. You’ll hear tales from the city’s storied history, and perhaps even encounter a ghost or two. Then enjoy local cocktail favorites at one of New Orleans’s oldest restaurants, a former Spanish armory.

To learn more about these events, visit the Exceedance website. If you’re ready to register, fill out your form.

Exceedance will be here soon, so look for our next blog in two weeks. It will include the latest information on the session tracks and content, as well as details of the keynote speakers.

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.

RMS(one): Tackling a Unique Big Data Problem

I am thrilled to join the team at RMS as CTO, with some sensational prospects for growth ahead of us. I originally came to RMS in a consulting role with CodeFutures Corporation, tapped to consult RMS on the development of RMS(one). In that role, I became fascinated by RMS as a company, by the vision for RMS(one), and by the unique challenges and opportunities that it presented. I am delighted to bring my experience and expertise in-house, where my primary focus is continuing the development of the RMS(one) platform and ensuring a seamless transition from our existing core product line.

I have tackled many big data problems in my previous role as CEO and COO of CodeFutures, where we created a big data platform designed to remove the complexity and limitations of current data management approaches. In my more than 20 years of experience with advanced software architectures, I worked with many of the most innovative and brilliant people in high-performance computing; I have helped organizations address the challenges of big data performance and scalability, encouraging effective applications of emerging technologies to fields including social networking, mobile applications, gaming, and complex computing systems.

Each big data problem is unique, but RMS’ is particularly intriguing. Part of what attracted me to the CTO role at RMS was the idea of tackling head-on the intense technical challenges of delivering a scalable risk management platform to an international group of the world’s leading insurance companies. Risk management is unique in the type and scale of data it manages; traditional big data techniques fall far short when tackling this problem. Not only do we need to handle data and processing at tremendous scale, we need to do it with the speed that meets customer expectations. RMS has customers all around the world and we need to deliver a platform they can all leverage to get results they need and expect.

The primary purpose of RMS(one) is to enable companies in the insurance, reinsurance, and insurance-linked securities industries to run RMS next generation HD catastrophe models. It will also allow them to implement their own models and give them access to others by third-party developers in an ever-growing ecosystem. It is designed as an open exposure and risk management platform on which users can define the full gamut of their exposures and contracts, and then implement their own analytics on a highly scalable and purpose-built cloud-based platform. RMS(one) will offer unprecedented flexibility, as well as truly real-time and dynamic risk management processes that will generate more resilient and profitable portfolios—very exciting stuff!

During development of RMS(one), we have garnered outstanding support and feedback from key customers and joint development partners; we know the platform is the first of its kind—a truly integrated and scalable platform for managing risk has never been accomplished before. Through beta testing we obtained hands-on feedback from said customers that we are leveraging into our new designs and capabilities. The idea is to provide new means to enable risk managers to change how they work, providing better results while expending less effort and time.

I work closely with several teams within the company, including software development, model development, product management, sales, and others to deliver on the platform’s objectives. The most engaging part of this work is turning the plans into workable designs that can then be executed by our teams. There is a tremendous group of talented individuals at RMS, and a big part of my job is to coalesce their efforts into a great final product, leveraging the brilliant ideas I encounter from many parts of the company. It is totally exciting, and our focus is riveted on delivering against the plan for RMS(one).

Managing Risk from Regulatory Requirements

A study last year by the Centre for the Study of Financial Innovation in collaboration with PricewaterhouseCoopers identified regulation as the number one risk after surveying life and non-life insurers, reinsurers, brokers, regulators, consultants, and service providers across North America, Bermuda, Latin America, Europe, Africa, the Middle East, and Asia.

We have been seeing an increase in regulatory requirements across the world—Solvency II in Europe, ORSA in the U.S., APRA’s horizontal requirement in Australia, and the B9 Earthquake requirement by OFSI in Canada—to name just a few. There has also been a push in Asia to move toward Solvency II style of regulation, with the Chinese regulator announcing intent to introduce a regulation regime based on a three-pillar system, and Japan aiming for Solvency II equivalence, at least for reinsurance.

Respondents were concerned that these new regulations come at a time when the industry is seeing reduced profitability due to poor investment performance in an uncertain macroeconomic environment. Some respondents felt that the sheer volume of the new regulations is creating a whole new class of risk—regulatory compliance risk.

Last week, Ernst & Young published its European Solvency II survey, spanning 20 countries and participants from more than 170 insurance companies. The study focused on Solvency II preparedness, and determined that the Pillar 3 regulatory requirement, which requires institutions to disclose details on the scope of application, capital, risk exposures, risk assessment processes, and the capital standing of the institution, still presents a major challenge across the industry. EY concluded that the challenges of reporting and ensuring robust data and information technology remain very significant.

This is not surprising, as we’re familiar with how the industry currently manages data. Multiple databases, missing or incorrect exposure data, risk clash, and an inability to consistently analyze or report across different businesses and entities are only symptoms of the malaise. Despite multiple industry initiatives, we have not managed to resolve the data quality issue.

Tracking of data, audit trails, the ability to roll back changes, and role-based user access are simple mechanisms that most other industries have widely embraced. Utilizing one system of record for all exposure data, no matter what the line of business or risk, has the obvious benefit of reducing errors and inconsistencies while creating a single source of risk data for modeling and other business applications. The ability to integrate insights from claims data into specific model adjustments, rather than having to tamper with exposure data, will further the integrity of exposure data as a single source of truth.

Taking the concept of a single system of record further, enabling catastrophe modeling and capital modeling tools to access the same underlying exposure data, with clearly defined hierarchies, can largely get rid of today’s versioning and inconsistency headaches. Even better, such a system of record could provide up-to-the-minute, “live” exposure.

The last piece of the puzzle is efficient reporting to internal and external stakeholders. Customizable dashboards, reporting apps for various regulatory and rating purposes, and APIs to communicate with external websites provide the necessary arsenal to meet multiple reporting requirements across group entities around the globe.

A well-designed system and infrastructure that helps companies meet regulatory requirements and achieve resilient risk management objectives is the holy grail of the industry.