How We Serve

 

More than 400 insurers, reinsurers, financial institutions, corporations, governments, and other non-governmental organizations trust RMS models, technology, and services to better understand and manage catastrophe risks throughout the world.

 
FIND THE RIGHT SOLUTION FOR YOUR BUSINESS
 
Elegantly Simple Parametric Triggers

The index used in the MetroCat Re Ltd catastrophe bond is elegant and simple: if a storm surge at the New York battery measures 8.5 feet, the Metropolitan Transit Authority (MTA) receives $200 million. Such simplicity requires a deep understanding of the associated risk. RMS partnered with the MTA to perform a detailed study of the assets at risk, how they behave during a storm surge event, where likely water ingress points are, and how the MTA’s rigorous storm surge defence strategies can mitigate this risk. The result was a bond dubbed "Deal of the Year."

Partnering to Reduce Windstorm Risk

More than $400 billion of hurricane wind exposure sits below deductibles in the U.S., effectively constituting uninsured risk. New Paradigm Underwriters used the market-leading RMS North Atlantic Hurricane Model to help design the contracts, determine trigger levels, and position new recording stations to create Hurricane PM, a supplemental parametric windstorm product designed to expand the breadth of coverage based on wind speed, ensuring fast claims payment.

Understanding Contingent Business Interruption Risk

The 2011 Tohoku earthquake and tsunami caused massive disruptions to manufacturing and supply chains across several industries around the globe, highlighting the need for better business continuity planning. RMS combined catastrophe modeling and cutting-edge network simulation techniques with high resolution exposure analysis to model contingent business interruption risk across a major automobile company’s manufacturing plants.

Timely Insights For Insurance-Linked Securities

Investors struggle to receive consistent and timely insights on investments in ILS funds; differences in data formats, metrics, and granularity make it difficult to create an accurate overall portfolio view -- leading to unreliable results. After licensing the RMS ILS software suite Miu to model their overall portfolio, a pension fund now understands the impact of historical events and the correlation between its ILS fund investments, for a far richer and deeper understanding of the risks.

Quantifying the Economic Impacts of Climate Change

Climate change has become a polarizing issue; amidst the political debate, business leaders recognized the need to take action and mitigate risk. The Risky Business Initiative, co-chaired by former New York City Mayor Michael Bloomberg, former Treasury Secretary Henry Paulson, and Farallon Capital founder Tom Steyer, tasked RMS with quantifying the changes in losses from hurricanes and storm surges through the coming century to ultimately determine the economic risks the U.S. faces from climate change.

Creative Solutions for Risk Transfer Alternatives

The Northeast Corridor is one of the busiest passenger railroads in the U.S. A single day loss of service could cost the US economy over $100 million, making it critical for Amtrak to be able to recover quickly in the event of a regional catastrophe. RMS helped Amtrak design the PennUnion Re Ltd catastrophe bond to precisely meet this need. A set of robust parametric triggers based on hazard readings, including ground motion, storm surge depth and wind speed, means that Amtrak can quickly recover $275 million should a catastrophe occur.