NEWARK, Calif. - May 18, 2016 RMS, a global catastrophe risk management firm, has completed groundbreaking analysis to quantify the economic risk to San Francisco’s property from future sea level rise. The analysis was used to inform the city’s recently released Sea Level Rise Action Plan, commissioned by Mayor Edwin Lee, and is based on the National Research Council’s upper-end projection of a 66-inch sea level rise by the year 2100.
RMS found that $55 billion of private and public sector property in the low-lying coastal areas around San Francisco would be permanently inundated by the end of the century. The calculation assumes that no measures are put in place to increase the city’s resilience and reflects present day costs to rebuild the affected buildings and infrastructure, rather than the market values 84 years from now.
RMS also calculated the property loss estimates for a 1-in-100-year extreme storm surge temporarily pushing up sea levels further to 108 inches. In this scenario an additional $22 billion of property assets would be at risk, bringing the total exposure to $77 billion.
Patrick Otellini, San Francisco’s Chief Resilience Officer said:“RMS was an essential partner in helping us deliver on Mayor Ed Lee’s directive to quantify the City’s risk from sea level rise as part of establishing our Sea Level Rise Action Plan. It was a great example of a successful public-private partnership. We believe RMS provided the highest resolution analysis that any major city in the world has used to quantify risk from sea level rise, and we now have a strong foundation for establishing our adaptation plans.”
Since publishing the Sea Level Rise Action Plan San Francisco’s mayor has announced an $8 million investment over the next two years to begin strengthening the city’s seawall, a critical piece of infrastructure, which provides flood protection to the downtown district.
“Our sea-level rise impact analysis for the City of San Francisco is already delivering results, by helping the city decide where to prioritize action and investment for resilience building projects, such as reinforcing the seawall,” said RMS’ Chief Strategy Officer, Paul VanderMarck. “As a company headquartered in the Bay Area, we appreciate first-hand the importance of increasing the city’s resilience to sea-level rise. But San Francisco is not unique in this respect. Coastal cities across the world face the same challenges from climate change.”
The project with the City of San Francisco is a milestone in RMS’ work with the public sector. As a result of RMS’ partnership with 100 Resilient Cities and the Rockefeller Foundation RMS has committed to help cities around the world in their efforts to improve resilience. The San Francisco project highlights the firm’s ability to use its unique expertise to quantify the shocks and stresses that can afflict cities.
Michael Berkowitz, President of 100 Resilient Cities said: “We know that sea level rise is coming and that it will impact our coastal cities. The opportunity is for San Francisco and the Bay Area to manage that and other complex issues ahead. RMS’ work shows the value of partnering with experts in the private sector to understand and quantify the impact these shocks and stresses may have, and how to reduce them. Building resilience across the world’s cities will naturally require partnerships with various sectors. To manage risk we need to measure it — and partners like RMS are key to that challenge.”
At RMS’ annual Exceedance conference in Miami this week, the first ever international workshop will be convened to help public sector leaders understand the application of resilience analytics. It will explore the value of science-based catastrophe modeling tools to help government and its agencies plan for risks such as floods, hurricanes, earthquakes, pandemics, wildfire, drought, terrorism and cyber-attacks. And, crucially, it will discuss how to finance those strategies.
Daniel Stander, Managing Director at RMS said: “Local, regional and national governments worldwide are increasingly embracing more comprehensive and actionable metrics to close the resilience gap. When considering the complex interplay between catastrophic shocks (like storms) and background stresses (like climate change) San Francisco’s approach provides an excellent example for other coastal cities of how to develop consensus around investments which build resilience.”
Notes to Editors:
The analysis used RMS’ proprietary data on individual buildings in San Francisco combined with information provided by the city on public assets. The $77 billion of property exposed to the most extreme scenario consists of 2,606 private sector buildings with a total value of $39 billion as well as $35 billion of public assets including city buildings, port facilities, San Francisco airport, the northern waterfront seawall and various other forms of infrastructure.
Newark, Calif. – May 7, 2021 – At its annual Exceedance conference this week, RMS, the world’s leading catastrophe risk solutions company, demonstrated the benefits (re)insurance customers are experiencing by moving to RMS Risk Modeler™, the cloud-based risk modeling application running on the RMS open cloud platform, Risk Intelligence™. Risk Modeler, a next-generation cloud-based modeling application, is designed to meet the complex needs of risk analysts and cat modelers at scale. Risk Modeler enables real-time risk analytics and unified, high-performance execution of RiskLink models and High-Definition (HD) simulation models. Designed with a deep understanding of customer requirements and leveraging the latest technological innovations, Risk Modeler easily integrates with other on-premise applications as well as other cloud applications through open APIs and export services, giving customers greater flexibility and choice. This week at Exceedance, the industry has heard from RMS customers about the advantages they are gaining by adopting Risk Modeler to help manage their risk portfolios. Gallagher Re, Price Forbes & Partners Ltd, and Unipol spoke during the conference keynotes about their experiences with Risk Modeler to date. Howden Group also shared their insights on the benefits of Risk Modeler. Neil Bramley, analytics executive, Gallagher Re, “Gallagher was keen to take advantage of the SaaS Solution, pushing the technology harder and faster, leveraging the benefits and scale of secure cloud computing to ultimately create tangible advantage and upsides for our clients. Risk Modeler helped us grow our analytical capability tremendously and our usage stats are through the roof compared to last year, with the added benefit of zero downtime whenever our divisions are looking to access new functionality and solutions.” Gian Luca De Marchi, group chief risk officer, Unipol Gruppo S.p.A., “Risk modeling through the Risk Modeler application allows us to run portfolio analyses and to support risk management assessments for risk profiling, risk monitoring, capital allocation, and optimal risk transfer. Now, the RMS models could help us in moving to an internal model, reducing the gap between economic capital and regulatory capital, and provide robust support in meeting regulatory requirements in particular in relation to stress tests.” David Flandro, managing director, Head of HX Analytics, Howden Group, “Risk Modeler together with RMS’s trusted science is an important part of our analytics ecosystem that helps Howden provide a differentiated service to our clients and partners. The SaaS delivery and API-based development framework is well positioned to help service our digital-first vision with distinction.” Alexander Hanks, executive director, head of actuarial & analytics, Price Forbes & Partners Ltd, “We worked with RMS as early adopters, making full use of Risk Modeler’s API first development approach to fully integrate modeling with our own cloud tools, switching off RiskLink and RiskBrowser in the process. Gone are the days of manually working with spreadsheets, copying and pasting and relying on manually re-running modeling of jobs. The automation work has taken manual time-consuming tasks away and we're able to spend much more time on interpreting modeling results and providing deeper insights to our clients.” Speaking at the conference, RMS CEO, Karen White, said, “When RMS launched Risk Modeler 2.0 in 2020, more customers started on their cloud migration with us. We are seeing more momentum in the industry for digital first strategies. Today, insurers, reinsurers, and brokers from every major global geographic region are on the RMS platform. Leveraging leading models, technology, and the cloud to gain greater risk insights helps them to avoid surprises, confidently deploy more capital, and potentially develop new products and new business models.”
Newark, Calif. – May 6, 2021 – RMS, the world’s leading catastrophe risk modeling and solutions company, announced new innovations to ExposureIQ™ on the Risk Intelligence platform, including real-time catastrophe event visualizations and more powerful reporting. RMS also unveiled new capabilities to allow cross-portfolio accumulations across reinsurance and insurance workflows. ExposureIQ is an innovative, cloud-based exposure management application designed to help portfolio managers gain deeper insights into their books, scaling to millions of locations, enabling easy discovery of hotspots, diversification, and portfolio re-balancing. The application provides access to exposure information which leverages events and footprints from RMS Event Response and RMS’s unique HWind real-time forecasting capabilities, to help gain a quicker and more accurate assessment of potential losses before, during, and after an event. Real-time analysis and insight into portfolios allow for alignment with a company’s risk appetite, exposing threats and opportunities within their portfolio. The latest ExposureIQ release provides powerful reporting with an in-app dashboard that allows portfolio analysis across the most critical building criteria, allowing customers to understand how varying geocoding resolutions impact results as well as understanding which building occupancies and construction types are driving their losses. This advanced reporting functionality speeds up analysis and empowers portfolio managers to make faster, better-informed decisions. ExposureIQ is now the only application in the market to provide near real-time event visualization through a powerful new mapping module that integrates RMS Event Response and RMS HWind data. There’s no longer a need for customers to download and upload data to their system. Customers can now automatically access the latest event data, visualize events against exposures, and run accumulations – all within the application on a near real-time basis. At its annual Exceedance Conference, RMS demonstrated how ExposureIQ will expand on these capabilities to allow customers to run accumulations across both their insurance and reinsurance books of business. It will enable users to easily build structures that represent business hierarchies in an intuitive way. For the first time, customers will be able to run accumulations across portfolios and across cedents all in one application and leverage the RMS rich data catalog derived from our market-leading model science. Speaking at the annual RMS Exceedance conference, RMS executive vice president, product, Cihan Biyikoglu, said: “Exposure management is one of the most important aspects in terms of overall business profitability and keeping business risk appetite in check. Real-time exposure information such as wind forecasting from RMS Event Response gives customers the insights and control they need during critical points before, during, and after an event. The inclusion of cross-portfolio and cross-cedant accumulation in this release takes portfolio analytics to an unprecedented level. RMS understands the importance of making decisions based on quality data and insights. ExposureIQ brings together excellence in modeling with the flexibility, scale, and performance of the cloud to enable companies to develop a comprehensive view of their portfolio, optimize workflows, generate quality insights, and improve profitability.”
Newark, Calif. – May 5, 2021 – RMS, the world’s leading catastrophe risk modeling and solutions company, today announces new models. Speaking at the annual RMS Exceedance conference, Mohsen Rahnama Ph.D., chief risk modeling officer and executive vice president, said: “Risk is increasingly complex and connected. RMS is focused on providing the highest quality and most transparent, robust catastrophe models to the industry in this environment. With the new inland flood models and global flood hazard maps, we address an important set of regions where flood is the most important peril, and now cover 100 percent of flood premiums written worldwide. The significant update to the RMS North Atlantic Hurricane Models incorporates the latest science, and applies the learnings from 2017 onward.” Global Flood Coverage Key flood models and maps announced today at Exceedance 2021 include: A new inland flood model for China will be available in June 2021, concurrently on both RiskLink Version 21.0 and Risk Modeler, the RMS cloud platform for model execution and analytics. New inland flood models for New Zealand and Southeast Asia (Thailand, Singapore, Malaysia, and Indonesia) are available in the second half of 2021. Global flood hazard maps for over 200 countries will also be available in the second half of 2021. With this significant expansion, the RMS Global Flood Solution Suite now offers unmatched high-resolution flood model coverage and a unified approach to manage all global flood risk. These models and maps cover 100 percent of global property gross written premiums for flood. North Atlantic Hurricane Significant updates to the industry-leading North Atlantic Hurricane (NAHU) Models were also announced. The North Atlantic Hurricane Models Version 21.0 now include medium-term event rates, lessons learned from the 2017-2020 hurricane seasons, and a new alternative view of vulnerability for Florida Residential Lines. Importantly, RMS incorporated an alternative view of risk accounting for the Florida Building Code 25 percent Roof Replacement Rule, which was expanded from the High Velocity Hurricane Zone (HVHZ) to cover the entire state of Florida in the 2017 Florida Building Code. These key updates empower customers to make more informed rate setting decisions. Additional 2021 RMS Models RMS Canada Wildfire Model has been added to the RMS North America Wildfire Models Suite and is available now. Canada Wildfire has coast-to-coast coverage for Canada. Consistent with the RMS U.S. Wildfire Model, the Canada model incorporates ignition and spread of wildfires, ember footprints, smoke footprints and urban conflagration, as well as the financial model that include hours and distance clauses for representation of policy terms. RMS Cyber Solutions Version 5.1, available now, incorporates a new dashboard for underwriters providing powerful cyber underwriting analytics and rich data covering cyber incidents and threats. RiskLink Version 21.0 RiskLink 21.0 will be available June 2021. All RiskLink models will be available concurrently on both RiskLink and Risk Modeler.