Newark, CA – May 6, 2020: The world is experiencing the extraordinary crisis of the COVID-19 pandemic, coupled with the never-ending climate crisis and escalating cyber threats. Markets, supply chains, economies, societies and assets can be highly susceptible to shocks and damage from these dynamically shifting risks, posing major challenges to understanding the impacts of these risks and to recovery. Today, at the annual Exceedance® conference, RMS, the world’s leading catastrophe risk solutions company, underscored the high cost that both acute and chronic risks pose while demonstrating that informed decision-making requires next-generation risk insights. To help address these challenges, RMS announced new model updates during the conference – focusing on infectious diseases, climate and cyber risk.
During his keynote presentation today, Mohsen Rahnama, Executive Vice President, Models, at RMS, compared lessons from COVID-19 to the response to climate change: “Over the last 120 days, every daily action has been critical to flattening the COVID-19 curve and has given us more data to gain insights into outcomes; similarly, climate change has gradually influenced risk over the last 120 years and will for the years to come. In turn, actions taken annually by companies and organizations will be equally critical to both understanding the totality of the risks and impacting outcomes. The effects span all parts of the insurance value chain from acute risks arising from catastrophic events, such as hurricane landfalls, to chronic risks, such as coastal flooding at high tide.”
In the same keynote, Pete Dailey, Vice President, Model Development, at RMS, stressed that science, data and models have together brought higher confidence to the relationship between climate change and insured perils. “One example is sea level, which we know, based on observations and physics, is rising globally and will continue to rise in the future. RMS is moving forward on two fronts: first, keeping cat models up to date with the latest in climate science, and second, developing new ways of projecting risk based on the future climate, in the near term as well as the long term. In addition, due to COVID-19, extreme weather events that occur this year, such as a major hurricane landfall, will potentially present a number of new challenges for insurers, such as with deployment of adjusters and claims processing, potentially while communities are social distancing. RMS Event Response services provide critical real- time insights for these types of events to help meet these challenges.”
Companies and governments are compelled to understand risks more deeply than ever before, and they need modern technology and the highest-quality, most-advanced models to accomplish this challenging task.
RMS has recently enhanced key models to help clients address the risks posed by these chronic and acute disasters.
ENDS
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.
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