NEWARK, Calif. - July 10, 2017 RMS, a global risk modeling and analytics firm, today announced a substantial expansion of its suite of modeling solutions for the Asia-Pacific region. New models include the RMS® South Korea Typhoon Model and the RMS® Taiwan Typhoon Model, adding to the existing typhoon models in the region, for Japan and China. For analyzing seismic risk, the Version 17 update includes four new models: the RMS® Vietnam Earthquake Model, the RMS® Singapore Earthquake Model, the RMS® Malaysia Earthquake Model and the RMS® Thailand Earthquake Model, which sit alongside earthquake risk models for seven other major economies in the region.
Mohsen Rahnama, RMS chief risk modeling officer, said “the scope of new models our teams are bringing to the Asia-Pacific market is unprecedented, and RMS is now able to offer typhoon and earthquake risk analysis across multiple countries in the region, enabling clients to grow and diversify their portfolios with confidence, using the market-leading science and analytics for which RMS is known.”
The most sophisticated typhoon models for South Korea and Taiwan on the market
The new RMS South Korea and Taiwan Typhoon Models give clients the analytics needed for improved risk selection and pricing, offering a comprehensive view of risk using the latest science to represent the full spectrum of severe storms that could bypass or make landfall. In addition to wind, typhoon flood risk is explicitly modeled by RMS in these territories – as it now is in Japan – including rainfall-driven inland flooding as well as coastal storm surge – all modeled at a high spatial resolution. The new RMS models help clients to identify the most profitable locations for writing new business, and to determine which areas are driving losses, with the tail risk from typhoon-driven flooding reflected in the models robustly. This ensures clients can analyze the vast majority of potential losses at longer return periods, and so calculate their capital requirements and reinsurance needs more confidently.
The models also allow for a highly granular differentiation of building vulnerability, reflecting different heights and construction types, with unique insights on the local insurance market and historical losses based on extensive RMS collaboration with local insurers on the ground.
“We have used all our experience and expertise from tropical cyclone modeling across the globe to develop these new models for South Korea and Taiwan,” said Rahnama. “Although non-life premium growth in these territories has been strong, penetration remains low and this is a significant opportunity for insurers and reinsurers to bridge this protection gap, if they have the most robust understanding of the risk. RMS is now providing that.”
RMS’ typhoon modeling for the western North Pacific also includes China & Hong Kong, Japan and Guam, in addition to Taiwan and South Korea.
State-of-the-art view of seismic hazard across Southeast Asia to differentiate risk precisely
RMS’ heavy investment in modeling solutions for Asia-Pacific also includes four new earthquake models for Southeast Asia: in Singapore, Malaysia, Thailand and Vietnam – which join existing models for the Philippines and Indonesia, meaning that RMS now models earthquake risk across six countries in Southeast Asia. These will enable clients to accurately assess portfolio accumulations, reinsurance capacity, capital requirements, and the risk to large accounts, because the correlation and diversification of risk across and between countries can now be viewed consistently throughout this fast-growing region. This capability will help firms achieve strategic growth objectives.
There are large variations in earthquake risk in Southeast Asia, a region which is developing and urbanizing rapidly. The new and updated models will allow clients writing business there to price with greater confidence by capturing the differences in seismic risk, building types and exposure concentrations. The RMS Southeast Asia Earthquake Models include an assessment of building characteristics, such as height, and the type of soil on which they are constructed, and incorporate over 1,000 country-specific vulnerability functions to differentiate their impact on potential losses.
Rahnama added: “With Southeast Asia among the fastest developing regions in the world, there is a huge opportunity for our clients to underwrite this increasing exposure if they can accurately represent potential future losses from individual risks to treaty reinsurance. These new earthquake models will help them to do this. They can use the same view of risk for portfolio and accumulation management, so safely expanding their business. Together with our other regional earthquake models for Taiwan, China, Japan, New Zealand and Australia, our clients now have the deepest insights into seismic risk across the Asia-Pacific region.”
The release of new typhoon and earthquake models for the Asia-Pacific region further demonstrates RMS’ strategic focus on helping clients close the coverage gap and take advantage of the region’s growth. It follows on from the addition in March 2017 of agricultural risk models for India and China to its growing line of emerging risks models. Furthermore, RMS is currently developing a flood model for India which will help (re)insurers manage high losses caused by both river and pluvial flooding from intense rainfall which, as Mumbai showed in 2005 and Chennai in 2015, is a major problem in principal cities. This is due to recent urban growth, which exacerbates flood risk, and higher levels of insurance penetration. This fully probabilistic flood model for India is due for release next year.
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
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.”
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.