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Insurance Solutions

Formerly Moody’s RMS

A recent report from Accenture entitled The Cloud Imperative for Insurance, stated that "… 10 percent or less of the overall insurance industry’s workload is currently running on public cloud platforms. That leaves most insurers without the cost and scalability benefits the public cloud offers and falling behind industry leaders.”

In the last 12 months, a great number of brokers, insurers, and reinsurers across all major regions, from Asia and the Americas to Europe, have realized the performance and scalability benefits of RMS® Risk Modeler™, helping to transform their catastrophe modeling organization. Risk Modeler allows customers to quickly unlock insights and improve real-time decision-making with cloud risk modeling software that combines innovative catastrophe models, efficient modeling workflows, and tools to support the model numbers.

Using cloud-based solutions such as Risk Modeler, our customers have been able to simplify access to RMS risk models – including Aggregate Loss Models (ALM®), Detailed Loss Models (DLM), and high-definition (HD) frameworks – in one application. They eliminate the burdens of building and maintaining IT infrastructure, so you can start to tackle complex issues such as model validation. To support customers using ALM, we recently released a total of 10 new ALM for the countries and perils in our growing HD model suite.

And to kick off 2022, this winter sees the latest Risk Modeler release, focusing on new workflow improvements to unlock the productivity of your catastrophe modelers. It looks to deliver performance, speed, and scale for global (re)insurers managing models that cover thousands of portfolios. RMS recognizes that empowering your catastrophe modelers with the tools and capabilities to better understand and quantify your risk will ultimately produce the greatest value to your organization.

More specifically, this release will help catastrophe modelers seamlessly incorporate your organization’s view of risk into the RMS standard view of risk, improve collaboration with other risk stakeholders, and build a more realistic view of cedant contracts in modeling workflows. Together, these innovations will help you improve risk pricing, accuracy, and selection​.

Let’s look at what is included in this new Risk Modeler release:

  • Event rate adjustments: You can establish your own custom event rates directly within Risk Modeler and compare model results instantaneously. Explore different scenarios without having to take time to completely re-run your analysis​. This allows you to understand the dynamics of the risk model, and adjust event rates closer to your view.
  • Event loss adjustments: Bring your business’s view of risk front and center with the ability to scale mean losses and uncertainty. This enables you to align your organization's view of risk versus the RMS standard view of risk. This is all done within Risk Modeler in real time without having to re-run models every time you make an event loss adjustment.
  • Currency conversion: Whether you are a national or global (re)insurer, you need to be able to easily reflect potential losses in the currencies they were generated in and translate these losses into your home currency or the currency used for a (re)insurance contract, for example. Risk Modeler allows you to seamlessly define and convert local market losses into different currencies based on the latest currency rates.  
  • RMS RiskLink® temporal simulation: A powerful new feature of this Risk Modeler release is the capability to convert event loss tables generated from RiskLink into a period loss table format. Gain advantage as you understand the temporal nature of results, assess the impact of clustering for tier 1 climate models and apply temporal terms for reinsurance contracts. ​
  • Post-analysis treaty editing: Ensure your treaties benefit from the latest understanding from events and model insights and translate this through the direct adjustment of treaty attributes. Risk Modeler allows you to adjust annual aggregate limits, annual aggregate deductibles amounts, and hours clauses to HD-model outputs. It also allows for the editing of all fields for catastrophe treaties.​

These new Risk Modeler innovations change the game on two fronts. First, the ability to adapt, change and better reflect your business’s view of risk, and then you can start to ask what-if questions compared to the RMS view of risk. Second, all this is now done instantly within Risk Modeler with your live data and the latest models. By removing the burden of constantly re-running models, your modeling teams can quickly get the analysis they need, and the insights to share with the business.

This first release for 2022 is the beginning of another exciting chapter for Risk Modeler customers, as RMS works to push the boundaries of risk modeling by allowing users to examine the core fundamentals of risk models, such as vulnerability, and generate their own view of risk. If you would like to know more about Risk Modeler or see it in action, please email sales@rms.com.

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Ashley Bernero
Ashley Bernero
Senior Product Manager, Model Development, RMS

Ashley is a Senior Product Manager within the Applications Product Management team. At RMS, Ashley is responsible for Risk Modeler, the model execution application within Risk Intelligence, with a focus on the integration of the High Definition Simulation models as well as model customization through Model Composer.

Ashley has been at RMS for nearly a decade and has held many roles including Client Support and Earthquake Model Product Management. She holds a bachelor’s degree in Industrial Engineering from Pennsylvania State University, and a master’s degree in Civil Engineering from Stevens Institute of Technology.

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