With the start of the U.S. wildfire season on the horizon, in the latest edition of EXPOSURE – the RMS magazine for risk management professionals, wildfire is our lead story, as we examine whether it now needs to be considered a peak peril. The 2017 and 2018 California wildfires have forced one of the biggest re-evaluations of a natural peril since Hurricane Andrew in 1992, as the industry begins to comprehend the potential loss severities.
The article argues that there are similarities with U.S. wildfire as there was with North Atlantic hurricane in 1992 – catastrophe models were relatively new and had not gained market-wide adoption, and many organizations were not systematically monitoring and limiting large accumulation exposure in high-risk areas. Find out why a rethink is required about how the risk management industry currently analyzes the exposure and the tools it uses.
It has been a momentous Exceedance here in Miami, with a raft of new product launches, excitement around transformation in our keynotes, a sea of new insight from across over sixty track sessions, and great camaraderie from the global risk community who took the time to join us here.
So much has happened, so time for a quick recap. Our opening keynote on Tuesday saw the unveiling of five new innovations. This included the launch of RMS Risk Intelligence™, an open and flexible platform built to enable better risk management and support profitable risk selection. RMS also introduced the Risk Data Object (RDO), a new open data standard.
We looked to the future on Wednesday, with keynotes from renowned disruptive innovation expert and futurist, Daniel Burrus, to answer the question – how can organizations survive and thrive in this age of transformation? Daniel offered a simple framework to help scan the disruptive environment, to ensure an organization is a disruptor, and not just disrupted. Robert Muir-Wood and Michael Steele from RMS examined the future of risk and risk management and suggested ten future risks that the industry needs to keep a watchful eye on.
After a great birthday reception yesterday evening, with RMS celebrating thirty years in business, the time to look back had past, as the keynote sessions for day two at Exceedance were all about looking to the future. Opening the general session keynote, Karen White, chief executive officer, welcomed our guest speaker to the Exceedance stage, renowned disruptive innovation expert and futurist, Daniel Burrus. A New York Times best-selling author, Daniel’s most recent book is entitled “The Anticipatory Organization: Turn Disruption and Change into Opportunity and Advantage”.
The opening keynote at Exceedance clearly set the agenda for this year’s conference – the future of risk. Karen White, chief executive officer for RMS, in her opening address, summarized the state of the risk management industry with one of her favorite songs – it just had to be David Bowie and “Changes”. But Karen asked what’s driving these changes, how do our clients see change, and how are they responding? Karen outlined how she had travelled the globe, (and clocked up hundreds of thousands of United MileagePlus points), talking to clients to get a clear-eyed view of what has changed and what to do about it.
Karen discovered that the catalysts for change had come from a wide range of sources, from how bad surprises are becoming, how new opportunities are motivating change, and how technology is changing approaches to risk. And it is a poignant time for RMS to look to the future of risk, as we celebrate and reflect on thirty years in business this year – and the birth of the nat cat modeling industry in 1989. Change has been constant in thirty years, but is now accelerating ahead, as Karen remarked that the next five years will define the future of risk.
To everyone who is already here, or is en route to the Exceedance conference – joining us in Miami from around the world, a warm welcome awaits as the global risk management community meets once again.
There is such a buzz around Exceedance already, with a great deal of anticipation ahead of tomorrow’s keynotes – to get a first look at the latest new developments, and the kick off of our extensive track program, with seven tracks and some seventy sessions over three days. The stage is set for us to share our vision for this fast-changing industry – and how RMS can bring models, analytics, and data together to provide the risk insight that the market needs. Everyone is ready to go – including our Expert Bar team who will be on hand throughout the two main days of the conference to answer any questions that our delegates have.
The April release of Risk Modeler 1.11 marks a major milestone in both model science and software. For the first time at RMS, a complete high-definition (HD) model – the RMS U.S. Inland Flood (USFL) HD model with integrated storm surge, and an accompanying model validation workflow are now available to all users on the new platform. It also marks the release of exciting new capabilities including auditable exposure edits and data access via third-party business intelligence and database tools.
What is Different About Model Validation on Risk Modeler?
For the USFL model to produce detailed insights into risk, it must realistically simulate the interactions between antecedent environmental conditions, event clustering, exposures, and insurance contracts over tens of thousands of possible timelines. That requires a new financial engine, a more powerful model execution engine, and a purpose-built database to handle the processing of and metrics calculation against the vast amounts of data that an HD model produces. Although the current RiskLink solution can perform some of these tasks and processes well and efficiently, Risk Modeler was especially built for these new requirements.
In addition to simply running this next-generation model, Risk Modeler has several features to quickly surface insights into the model and ultimately allow users to make business decisions faster.
If you are joining us in Miami (May 13-16) for Exceedance this year, we are looking forward to welcoming you to what promises to be an exceptional conference. With the global risk management community coming together again at Exceedance, to learn, be inspired and get answers to the challenges faced by the industry, we have raised the bar to deliver another ambitious agenda.
And there is still time to secure your place at Exceedance with a pre-event discount of US$200 compared to the on-site registration price, find out more and register now.
Exceedance provides a unique environment for our delegates to explore, a place where the latest science, software, models and innovation come together. With RMS experts and renowned industry thought-leaders, we share the latest cutting-edge insights. Hands-on demonstrations in our Expert Bar show how to get the best from our solutions, and case studies take you through how leading businesses are moving forward to achieve their strategic goals.
Regular attendees to the annual RMS Exceedance conference will know how comprehensive our agenda is, in terms of the sheer breadth of topics and areas we cover. Our aim is to deliver a program designed to highlight the issues, opportunities, and the solutions available to tackle the challenges that the risk management industry faces.
Join us in Miami (May 13 – 16) for this year’s Exceedance, and in addition to our keynote presentations (and of course, social events, The Expert Bar, our thirtieth anniversary, and the EP), the mainstay of our conference focuses on sessions spanning across seven in-depth “track” themes.
Our tracks cover a broad range within its defined theme over two days, with educational sessions, panel discussions, case studies, and “how-to” and technical deep-dives. All the track descriptors are available on the Exceedance website. Attendees can immerse themselves in a single track or pick and mix across all seven to create their perfect agenda.
Guest Blog: Jane Warring, senior counsel, Clyde & Co. U.S. LLP
A few weeks’ back I attended my first Exceedance. If you go to a new conference, you are never entirely sure what to expect. Suffice it to say though, it was like no industry event I have ever attended — and in a good way.
Above all, though, I was blown away by the sessions. I have spent almost 15 years litigating first-party property/coverage disputes at both the trial and appellate levels. So, I know a thing or two about the interplay between exposure, risk and coverage. But Exceedance was a whole new level of learning: information-rich content, transparent discussions, engaged delegates and high-quality speakers.
Like many attendees, I filed a trip report on my return to the office. I wanted to make sure my colleagues who lead our resilience work benefited from my learnings. This got me thinking. What were some of the top takeaways from #Exceedance18?
There is nothing quite like a “banging EP” to make me feel young again. But that wasn’t the only aspect of my most recent trip to Miami that brought out the millennial in me.
If you missed Exceedance 2018 a few weeks back, you probably also missed Resilience 2018. Embedded every year within Exceedance, RMS holds a space for policymakers and business leaders to collaborate to a very important end: ensuring local communities and regional economies are resilient to the shocks and stresses they face.