RMS sits at the intersection of technology, science and domain experience giving us a unique perspective on what’s going on in the world of tech, modeling and computing. ‘In Case You Missed It’ is our round-up of the latest developments from Silicon Valley to Bangalore that EXPOSURE doesn’t want its readers to miss. In this edition, Eric Yau, general manager of software at RMS, picks his top three headlines.

01. Mitsui teams up with NASA

In an excellent example of how big data can be utilized to help close the protection gap, Mitsui Sumitomo Insurance has joined forces with NASA. The Japanese insurer is making use of NASA’s satellite data to boost the global potential of weather derivatives and other parametric weather-related insurance products.

Mitsui Sumitomo aims to sell this product globally, having developed an underwriting system that uses remote sensing data from satellites and weather derivatives underpinning the transaction, backed by reinsurance capital.

The product is aimed at all industries that may suffer from a loss of income as a result of extreme or unexpected weather. This includes manufacturers whose output could be suspended by storms or floods, power utilities hit by cold weather during the summer months and even event organizers. Payouts will be made based on previously-agreed-upon conditions regarding temperatures, rainfall and other weather-related factors.

02. Risk Modeler 1.0 – a new era

Risk Modeler 1.0 marks a step-change for businesses using catastrophe risk models that will transform the modeling paradigm. Powered by RMS(one)®, our open, big data and analytics platform, the analytics solution introduces new and more powerful modeling functionality to surface much deeper insights into the drivers of catastrophe risk.

We have developed Risk Modeler to re-engineer modeling workflows by consolidating and enhancing the analytical devices used by risk analysts. The value gained is more accurate modeling of complex contract and programs, while enabling deeper and more flexible risk interrogation using Risk Modeler’s specialist diagnostic tools and big data querying capabilities.

Leveraging the scale of the Cloud and the power of the RMS(one) platform, which has been purpose-built for the insurance industry, we designed Risk Modeler to act as a single system to support all models, view of risks, and analytics, as well as process larger data volumes than historically possible, while reducing the number of systems our clients have to support in their modeling ecosystems today.

03. Cloud computing & insurance: Busting the myths

In his latest blog, Accenture senior managing director and insurance lead for Europe, Africa and Latin America, Daniele Presutti seeks to address some of the common misconceptions about the adoption of cloud services amongst insurance and reinsurance companies.

Around 85 percent of respondents to Accenture’s 2016 Technology Vision for Insurance survey agreed the cloud would foster innovation in their businesses that was not previously possible. However, only 49 percent were investing in comprehensive digital technology programs as part of their business strategies – moves essential to capitalize on the potential of the cloud.

Some of the reasons (re)insurers are reluctant to move core services to the cloud, include the belief that:

  • Lifting and shifting applications to the cloud does not work;
  • Sunk costs are unrecoverable, and
  • Digital transformation can happen without cloud.

“These beliefs are, for the most part, fallacies,” states Presutti. “In addition to cost savings, moving to a more agile, cloud-based environment provides insurers with the flexibility and speed-to-market that traditional infrastructure cannot match.”