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Insurance Solutions

Formerly Moody’s RMS

With more than 250 clients benefiting from the cloud-native Moody’s Intelligent Risk Platform™ (IRP) and associated applications to manage risk modeling workflows and deliver risk insights to decision-makers across their businesses, the speed, flexibility, and capacity offered by the IRP is opening up new opportunities – including making the introduction of new models much easier.

Clients on the platform can license the risk models they require. With their exposure data already stored within the platform, they can select the exposure data files they need to model, whether across a single or multiple models. This is opening up new opportunities to explore new risk classes.

Moody’s RMS terrorism risk solutions have continually evolved since the tragic events of 9/11 in 2001, to provide confidence in understanding this complex peril, introducing probabilistic terrorism modeling, and developing a trusted view of the terrorism threat landscape.

With a suite of terrorism modeling solutions, it has become the most widely accepted model in the industry, gaining credibility from experts in the field and collaboration with government agencies, using terrorism motivation and attack considerations, 3D blast modeling techniques, and consistent updates to the models reflective of the current landscape.

Terrorism Modeling Integration

We can announce that Moody’s has completed integrating and expanding its terrorism modeling solutions on the Intelligent Risk Platform by releasing Moody’s RMS Terrorism high-definition (HD) Model and Terrorism Scenario Model for the Risk Modeler™ application.

This includes the analysis of property and workers’ compensation exposures supported across the platform; IRP clients can now include terrorism modeling alongside their modeling for other perils such as earthquakes.

As IRP clients are becoming more accustomed to using the applications on the platform, it is imperative that clients can perform terrorism modeling within the applications they are used to for modeling natural catastrophe perils.  

The terrorism modeling suite on the Intelligent Risk Platform is structured across ExposureIQ™ and Risk Modeler to support best practice in terrorism insurance risk management using a three-tiered approach of quantifying accumulation, scenario losses, and probabilistic losses.

Using the Intelligent Risk Platform:

  • Terrorism Exposure Management is captured using accumulations on ExposureIQ
  • Terrorism Scenario Loss Modeling is performed on Risk Modeler
  • Terrorism Probabilistic Loss Modeling is performed on Risk Modeler

Exposure Management

With expanded support for property and workers’ compensation coverages, model users can fully view and analyze terrorism exposure within regions of interest using ExposureIQ, with a choice of analysis modes.

Using a ‘Specific Area’ analysis, clients can monitor their multiline exposure for nearly 10,000 high-risk targets identified by Moody’s, or add in any user-defined targets globally. With a ‘Circle Spider’ analysis, clients can highlight concentrations of terrorism exposure exceeding financial or injury thresholds within any radius of interest.

Scenario Loss Modeling

To evaluate a range of potential attacks impacting terrorism exposure, Risk Modeler sees the addition of a ‘Simple Damage’ and ‘Spider’ footprint. The Simple Damage footprint analysis allows users to model worst-case, what-if, or rating submission scenarios, for portfolios in key urban areas.

To develop benchmarks and capacity limits, users can deploy Spider footprints to help, informed by the largest concentrations of attack scenario loss.

Probabilistic Loss Modeling

For property and workers’ compensation policies, the Terrorism HD framework models loss interaction with risk transfer mechanisms based on common insurance terms and conditions, and assesses the loss contribution from conventional attacks and/or chemical, biological, radiological, and nuclear (CBRN) attacks, net of reinsurance, and protection gap entity structures using exceedance probability analysis.

Using the shared exposure and contract structures stored in the Intelligent Risk Platform, users can quantify contract application on probabilistic terrorism loss grouped with natural catastrophe probabilistic loss.

These developments open up a new chapter for Moody’s as we bring market-leading terrorism modeling fully onto the Intelligent Risk Platform. This offers insurers a leading view of terrorism risk and creates a more precise, transparent, and flexible workflow.

The introduction of Terrorism HD and Terrorism Scenario Model on the platform completes a long-anticipated step forward in terrorism modeling, making it more accessible than ever. To find out more, click here.

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Introducing Terrorism HD Modeling on the Moody’s RMS Intelligent Risk Platform
Reynir Winnan
Reynir Winnan
Product Manager - Emerging Risk

Reynir Winnan is a Product Manager on the Emerging Risks team, responsible for the Terrorism Model. He has been with Moody's for over 7 years, previously as part of the U.S. Model Specialist team, earning a Certified Catastrophe Risk Analyst (CCRA) designation.

Before joining Moody's, he earned a master’s degree in Atmospheric Science from the University of Alaska Fairbanks, focusing on the impacts of interannual climate variability, and a master’s degree focusing on the societal effects of climate from Columbia University.

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