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:
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:
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:
LONDON – 20th December, 2021 – RMS®, the world’s leading catastrophe risk solutions company, announces that it has formally signed a consulting agreement with Tunis Re to create an exposure and accumulation study, with a focus on Flood, Terrorism and other natural catastrophes. This agreement will enable Tunis Re to increase monitoring of its exposures and further expand its risk management capabilities. Lamia Ben Mahmoud, Chief Executive Officer at Tunis Re, said: “To continue providing our valued clients with the excellent service to which they are accustomed, we continuously look for ways to stay ahead of our exposures and maintain exceptional risk management processes. Our strategic collaboration with RMS, who is highly regarded especially around flood, natural catastrophe and terrorism risks, will enable us to further develop a more comprehensive monitoring of these risks for the benefit of both our team and our clients and our other business partners.” Vivek Bajaj, Managing Director Europe and Asia, RMS, added: “We are delighted to work with Tunis Re on this collaborative initiative. We look forward to assisting them in furthering their awareness and knowledge of their exposures and supporting them as they embark on this journey. This demonstrates our commitment to continued development and growth in the important MENA region.” About Tunis Re Tunis Re is a public limited reinsurance company based in Tunis, Tunisia. Founded in 1981, the company writes both treaty and facultative solutions (non-life and life) and is one of Africa’s leading regional reinsurers. Tunis Re has a diversified global portfolio which expands over 51 countries across the Middle East, Africa and Asia.
LONDON – 13th December, 2021 – RMS, the world’s leading catastrophe risk solutions company, is working with leading global specialty (re)insurer Canopius to develop and enhance Canopius’ climate change risk analysis with the adoption of RMS Climate Change Models. RMS has worked closely with Canopius to fully integrate the climate change models into its business processes with a focus on North Atlantic hurricane wind and storm surge. The RMS Climate Change Models will also help Canopius to respond to new and emerging regulatory reporting, such as the recent Bank of England Climate Biennial Exploratory Scenario (CBES) exercise, as well as further financial disclosures. RMS Climate Change Models help (re)insurers, such as Canopius, better understand, evaluate, and manage climate change risk in multiple regions using a probabilistic modeling approach. The models offer comprehensive and flexible parameters to seamlessly adjust time horizons and Representative Concentration Pathways (RCPs) to assess the impacts and uncertainties associated with different climate change scenarios. Joss Matthewman, Senior Director, Product Management, RMS, said: “Rigorous and reliable climate change risk analytics are vital for all businesses right now. This is not just about contributing to increased regulation and financial disclosures, but also providing clients with strategic insights and outcomes for short-, medium- and long-term horizons. We are pleased to continue our work with Canopius, and we see more companies across the insurance and reinsurance industry defining best practices around climate change and investing in the future of our industry.” Paul Wilkinson, Head of Aggregation and Risk Strategy, Canopius said: “Climate change presents one of the most significant risks to the (re)insurance industry. It is important to us to incorporate the latest science relating to climate change into our risk analytics in a manner that can be tailored to our needs and fully integrated across key business operations, such as portfolio management, near-term underwriting, and business planning. The RMS models enable adjusting time horizons for the near- and long-term, which, combined with the full flexibility and range of the IPCC’s Representative Concentration Pathway (RCP) scenarios allows us to confidently assess North Atlantic hurricane climate change risks.”
LONDON – 7th December, 2021 – Specialist global insurer Hiscox is working with RMS, the world’s leading catastrophe risk solutions company, to extend and increase its use of groundbreaking RMS Location Intelligence API technology, to improve the customer experience for its coverholders by providing real-time tailored quotes. RMS Location Intelligence provides market-leading modeling data offering high-resolution, location-level hazard, risk, and loss metrics. The use of an application programming interface (API) to integrate RMS data directly into Hiscox systems allows real-time responses to coverholders, and no lost business due to slow response times. RMS Location Intelligence also provides a live view of Hiscox’s bound portfolio enabling active management of risk aggregation and greater opportunities for dynamic pricing. Paul Butler, Technology Director, Hiscox, said: “It is no secret that technology continues to be a major driver across all aspects of the insurance industry. At Hiscox we are accelerating investment in our data and analytical capabilities to enable us to capture new opportunities in the market. Our Coverholder relationships are vital to our business growth at Hiscox and since working with RMS Location Intelligence API, our FloodPlus book has doubled year on year, now generating in the region of 20,000 quotes per week. The millisecond response times are needed to keep our overall API response time below four seconds – our benchmark for providing real-time and automated trading platforms in FloodPlus and BindPlus.” Jason Futers, Managing Director at RMS, said: “There has been huge growth in the Coverholder market, and many sophisticated carriers are now moving to live quoting of delegated business so that they can precisely tailor pricing to their view of risk and build a better book of business. RMS Location Intelligence offers real-time screening and pricing analytics from RMS data and models that enable carriers to adopt a consistent view across the full risk transfer process, from individual risks through to portfolio management. Being able to provide coverholders with real-time, fully automated quotes is a gamechanger that is driving increases to the quote-to-bind ratios, and improvements in the quality and quantity of underwritten policies.” About the Hiscox Group Hiscox is a global specialist insurer, headquartered in Bermuda and listed on the London Stock Exchange (LSE:HSX). Our ambition is to be a respected specialist insurer with a diverse portfolio by product and geography. We believe that building balance between catastrophe-exposed business and less volatile local specialty business gives us opportunities for profitable growth throughout the insurance cycle. The Hiscox Group employs over 3,000 people in 14 countries, and has customers worldwide. Through the retail businesses in the UK, Europe, Asia and the USA, we offer a range of specialist insurance for professionals and business customers as well as homeowners. Internationally traded, bigger ticket business and reinsurance is underwritten through Hiscox London Market and Hiscox Re & ILS. Our values define our business, with a focus on people, courage, ownership and integrity. We pride ourselves on being true to our word and our award-winning claims service is testament to that. For more information, visit www.hiscoxgroup.com