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NEW YORK - September 22, 2014 RMS, the world’s leading catastrophe risk management firm, and 100 Resilient Cities—Pioneered by The Rockefeller Foundation (100RC) today announced a partnership that will allow cities in 100RC Network to access the RMS(one) exposure and risk management platform as well as RMS catastrophe models to help them make well-informed decisions about managing and mitigating natural hazard risk. RMS has joined a Clinton Global Initiative (CGI) Commitment to Action through the partnership with 100RC, pledging to address this global challenge.

100RC aims to help 100 cities around the world build resilience to shocks such as catastrophic events, as well as chronic stresses such as climate change. It is providing cities with funding to hire a chief resilience officer, assistance in establishing and implementing a resilience strategy and access to technology and expertise from a select platform of partners.

“We’re excited to welcome RMS as the newest partner to the 100 Resilient Cities program,” said Michael Berkowitz, president of 100 Resilient Cities. “Natural catastrophes are a major driver of risk for many of the cities we are working with, and RMS’ models and technology will enable them to better understand that risk as the foundation for achieving resilience.”

San Francisco will be the first city in the 100 Resilient Cities program to take advantage of RMS models and technology.

“In San Francisco, we have already made a significant investment in modeling expected losses from future earthquake scenarios, which has informed multiple public policy decisions. These include innovative legislation passed in 2013 to mandate the retrofit of soft-story wood frame structures, which modeling identified as one of the greatest sources of potential loss of life as well as potential loss of housing units in a future event,” said Patrick Otellini, chief resilience officer for San Francisco. “RMS’s science and technology will enable us to use modeling more dynamically to improve our understanding of risk, to analyze the benefits of potential mitigation investments and to respond effectively to actual events.”

RMS technology can be used by cities in a variety of ways to increase their resilience, including:

  • Develop high quality data on exposures: Cities can use the RMS(one) platform to establish a system of record for all data on property, people and infrastructure exposed to natural hazards, enabling consistent assumptions and availability of data for all risk assessment projects as well as systematic improvement of the data over time.  
  • Improve understanding of risk: By building and running catastrophe models to simulate expected damage and other impacts from plausible future events, cities can identify key drivers of risk, whether by geography, type of building, or other factors.  
  • Prioritize mitigation investments: Cities can test hypothetical scenarios to quantify the impact of potential investments in changing building codes, implementing retrofit programs, or improving infrastructure.
  • Communicate risk: Armed with data and analysis, cities can more effectively share information on exposures and risks to motivate communities to prepare for natural hazards.
  • Measure progress: With consistent and easily updateable information on all exposures, cities can regularly refresh their risk assessments to reflect achievements in improving the building stock as well as growth in overall exposures to measure progress over time.
  • Analyse risk-financing schemes: Assessing the expected frequency of various levels of financial loss to public buildings and infrastructure enables cities to evaluate potential mechanisms to finance disaster response and rebuilding costs from future events.
  • Respond to disasters: By capturing all exposure information and modelling assumptions in the RMS(one) platform, cities can rapidly quantify expected damage after a catastrophe and prioritize allocation of resources. 

“Enabling societal resilience is at the core of RMS’s business,” said Paul VanderMarck, chief products officer at RMS. “By providing our models and technology to cities in the 100 Resilient Cities program, we can help them better understand their catastrophe risk and increase their resilience. As a company headquartered in the San Francisco Bay Area, we are pleased that San Francisco will be the first city to use our models and technology and we are looking forward to working with other cities around the world, including those who are at an earlier stage in their efforts to quantify their risk and take steps to prepare for future events.” 

Related Resources
March 22, 2021
RMS Launches New Climate Change Models

Newark, CA – March 22, 2021 – RMS, the world’s leading catastrophe risk solutions company, today announced the forthcoming launch of a new suite of Climate Change Models to help customers assess the near and long term impacts of climate change on physical assets and their businesses, in order to make the best possible risk and financial decisions.   According to RMS CEO, Karen White, “Today there are no robust or consistent frameworks that can quantify the physical risks posed by catastrophes in a changing climate at the depth required.  The innovative suite of RMS Climate Change Models changes that, giving the market a powerful new set of tools. With increasing Board-level attention, stakeholder scrutiny, and regulatory pressure, businesses need to operationalize climate change analytics to make better decisions and enable better transparency. It is clear that the financial impacts of climate change are not solely a “future problem”. The increasing incidence of wildfires, floods and hurricanes mean that climate change insights need to be incorporated into financial decisions that are being made today, in parallel with long term strategic planning and meeting increasing regulatory, environmental, social and governance (ESG) and TCFD reporting requirements, and investor and customer demands. This necessitates a climate change framework and models fully consistent with today’s catastrophe risk analytics and one which addresses the challenges posed by physical climate change risk and its broad impact across all relevant time scales – from today through to the end of the century.” Most RMS models, including all major peril models, already incorporate the impact of climate change up until now – but more is required to meet the evolving and significant market needs. The new RMS Climate Change Models take our existing capabilities further with forward-looking predictive insights and analysis. The new Climate Change Models empower RMS’s economic modeling framework with the best climate science consensus, including from the Intergovernmental Panel on Climate Change (IPCC).  The new models will be generally available in June for major peril models North Atlantic Hurricane, Europe Inland Flood and Europe Windstorm. Further models and geographies will follow this initial model suite launch. The RMS climate change solutions also include climate change specialist advisory and consulting expertise and regulatory, ESG and TCFD support.   The Climate Change Models address the perils most impacted by climate change and feature: Probabilistic modeling to capture events across different climate change scenarios The ability to adjust time horizons and Representative Concentration Pathways (RCPs) A proprietary industry and economic exposure database to deliver more accurate and impactful climate change models Embeddable software which integrates into existing workflows to facilitate seamless and easy operationalization  Consulting and additional expertise supporting regulatory submissions and activities, and providing insights from these new models today   Commenting on the RMS climate change solutions, Eric Letourneau, SVP, Group Head of CAT Accumulation Management, QBE, said: “The insights on climate risk provided by RMS have enabled us to better understand climate-related risks and opportunities for our business, to report those insights to financial stakeholders, and to develop and test strategy for our business. We can embed these analytics in our business processes, confident that we have consistency with how we measure underwriting risk and capital requirements now and in the future.” The new RMS Climate Change Models, data, and analytics empower organizations to: Understand the impacts climate change may have on capital and assets today and in the future Price and manage risks to better reflect changing conditions Confidently communicate risks posed by climate change to all stakeholders Comply with regulatory submissions in an efficient and sustainable way RMS has been modeling natural catastrophe risk for the insurance industry for more than 30 years and has been leading research into the impact of climate change on catastrophic losses since RMS’s involvement in the 2007 4th IPCC Assessment Report.   You can learn more about RMS Climate Change solutions here:   https://www.rms.com/climate-change  

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March 17, 2021
TigerRisk Strengthens Global View of Catastrophe Risk With Next-Generation RMS High-Definition Models

NEWARK, Calif. – March 17, 2021 – RMS®, the world’s leading catastrophe risk solutions company, and TigerRisk Partners, the leading risk, capital, and strategic advisor to the global insurance and reinsurance industry, today announced the expansion of their partnership to include additional models and data in a new multiyear agreement. With this agreement, TigerRisk can now access the full RMS global natural catastrophe risk models suite. This includes RMS High Definition Models™ such as the RMS North America Wildfire HD Models, RMS Europe Flood HD Models, and RMS Europe Severe Convective Storm HD Models. This complements TigerRisk’s longstanding implementation of the RMS natural catastrophe view of risk in the U.S. on RMS RiskLink®. “We are committed to providing our clients with best-in-class solutions as they navigate this volatile risk landscape,” said Rod Fox, chief executive officer of TigerRisk. “Our clients depend on us to help them maintain a competitive edge, and it’s important we work alongside organizations that can help us support their needs. Our expanded partnership with RMS  ensures that we can increase the value we bring to our clients and continue to deliver solutions for managing global risk profitably.” Karen White, chief executive officer of RMS, said, “TigerRisk Partners has established themselves as an innovative reinsurance broker and capital advisor firm in the market. As a valued partner of RMS for over a decade, their investment in analytics aimed at providing the best insights and services for their clients mirrors our commitment to the market. We look forward to continuing to support TigerRisk with the most trusted view of risk in the industry as they grow their business and enhance their services.”

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December 15, 2020
RMS Estimates that Total Insured Losses from the 2020 Western U.S. Wildfires Will Be Between US$7bn – US$13bn

Newark, CA – December 15, 2020 – RMS, the world’s leading catastrophe risk solutions company, estimates insured losses from the record-breaking western U.S. wildfires this season will be between US$7.0 and US$13.0 billion. These losses reflect estimates as of December 1, 2020 and represent an update from the previously estimated losses from fires up to September 20, 2020. The ignition of the highly damaging Glass Fire and additional spread of the CZU and LNU Complex Fires represent the most notable activity in California since September 20. RMS insured losses represent estimates from major wildfires in California, Oregon, Washington, and Colorado at December 1, 2020: Region Insured Losses (USD $ bn) as of 1 December, 2020 Northern California Oregon and Washington Colorado 5.0 - 9.0 1.0 - 3.0 Up to 1.0 The RMS estimate includes losses from property damage, including evacuation and smoke damage, business interruption (BI), and additional living expenses (ALE) across residential, commercial, and industrial lines. Smoke and evacuation are expected to be significant contributors to losses for the wildfires this season, contributing about 20 percent of losses in California and Colorado and about 35 percent in Oregon and Washington. The estimate also accounts for notable post-event loss amplification (PLA) from property damage (25 to 30 percent) and business interruption/ALE (up to 100 percent or greater). The RMS loss estimate is based on detailed modeling of fire spread, ember accumulations, and smoke dispersion of the fires utilizing the U.S. Wildfire High-Definition (HD) Model, part of the North America Wildfire HD Model suite, released in February, 2019. The model covers the entire contiguous U.S. and explicitly simulates ember and smoke to support detailed analysis of the impact of a wildfire beyond historical fire perimeters. The model’s findings were supported by Damage Inspection Specialist (DINS) damage surveys for California Fires, published damage reports from federal and respective state agencies for the Oregon, Washington, and Colorado fires, and the RMS U.S. Wildfire Industry Exposure Database. Michael Young, Vice President, Product Management said: “2020 represents the most destructive fire season on record, in terms of burn area in California. Since August, 69 major fires that exceeded 1,000 burned acres each, have burned so far. Five of the six largest ever California wildfires have occurred in 2020, with over 4.4 million acres burned in total to date. While fires earlier in the season were dominated by ignitions sparked by the intense lightning storm in August, extreme wind-driven fires dominated the last few months. A similar phenomenon resulted in record-breaking fires in Oregon as well this season, with over 20 major fires driven by extreme winds, burning more than 1.2 million acres so far. In October, Colorado experienced its three largest destructive fires with more than 24 major fires burning 850,000 acres in total. Rajkiran Vojjala, Vice President, Model Development said: “This wildfire season reaffirms the growing catastrophic nature of this peril. Wildfire risk is clearly evolving, not only in California, but also in other states, as we observed in Oregon and Colorado. While changing climate patterns have significantly influenced the record-breaking fires this season, several other factors also profoundly affected the ignition potential and expected losses from these events in different ways. Most notable amongst them are the Public Safety Power Shutoff (PSPS) measures undertaken by utilities, preparedness and response of firefighters in Northern California despite COVID-19 challenges, and recent legislative actions governing wildfire claims settlement such as the California Senate Bill 872. RMS is currently engaged with various stakeholders in evaluating these factors and understanding their impact on the emerging risk profile of this peril as part of its wildfire modeling agenda.”   END The technology and data used in providing this information is based on the scientific data, mathematical and empirical models, and encoded experience of scientists and specialists. As with any model of physical systems, particularly those with low frequencies of occurrence and potentially high severity outcomes, the actual losses from catastrophic events may differ from the results of simulation analyses. RMS SPECIFICALLY DISCLAIMS ANY AND ALL RESPONSIBILITIES, OBLIGATIONS AND LIABILITY WITH RESPECT TO ANY DECISIONS OR ADVICE MADE OR GIVEN AS A RESULT OF THE INFORMATION OR USE THEREOF, INCLUDING ALL WARRANTIES, WHETHER EXPRESS OR IMPLIED, INCLUDING BUT NOT LIMITED TO, WARRANTIES OF NON-INFRINGEMENT, MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE. IN NO EVENT SHALL RMS (OR ITS PARENT, SUBSIDIARY, OR OTHER AFFILIATED COMPANIES) BE LIABLE FOR DIRECT, INDIRECT, SPECIAL, INCIDENTAL, OR CONSEQUENTIAL DAMAGES WITH RESPECT TO ANY DECISIONS OR ADVICE MADE OR GIVEN AS A RESULT OF THE CONTENTS OF THIS INFORMATION OR USE THEREOF.

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About RMS

Risk Management Solutions, Inc. (RMS) shapes the world’s view of risk for insurers, reinsurers, financial services organizations, and the public sector. We empower organizations to evaluate and manage global risk from natural and man-made catastrophes, including hurricanes, earthquakes, floods, climate change, cyber, and pandemics.

RMS helped pioneer the catastrophe risk industry, and continues to lead in innovation by offering unmatched science, technology, and 300+ catastrophe risk models. Leaders across multiple industries can address the risks of tomorrow with RMS Risk Intelligence™ (RI), our open, unified cloud platform for global risk, which enables them to tap into RMS HD models, rich data layers, intuitive applications, and APIs.

Further supporting the industry's transition to modern risk management, RMS spearheaded the Risk Data Open Standard (RDOS), a new modern open standard data schema designed to be an extensible, flexible, and future-proof asset within modeling/analysis systems.

RMS is a trusted solutions partner, enabling effective risk management for better business decision-making across risk identification and selection, mitigation, underwriting, and portfolio management.

Visit RMS.com to learn more and follow us on LinkedIn and Twitter.

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+1 551 226 1604 prteam@rms.com
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