Arium partners to develop casualty accumulation scenarios tool

Specialist risk modeller Arium has partnered with Advisen, a provider of technology solutions in the property/casualty market to build casualty accumulation scenarios, using Advisen’s loss event data and Arium’s modelling tool, to assess insurance portfolio exposure to catastrophic casualty risk.

Arium has utilised catastrophe examples from Advisen’s database of high severity/low frequency losses to inform its realistic disaster scenarios (RDS) and create a tool to help insurance entities model their exposure to emerging casualty catastrophes.

According to Arium, its clients can now understand and stress test how their specific risk portfolios might be exposed to developing casualty accumulations.

Robin Wilkinson, chief executive officer of Arium, said: “The Advisen data set is the best we’ve found for modelling historic casualty risk.

“It has enabled us to develop multiple scenarios that can be stress tested and adjusted by clients, which include events such as Deepwater Horizon, the asbestos problem, Enron and LIBOR manipulation, ensuring scenarios are available that are directly relevant to most casualty risk portfolios.”

Dave Bradford, co-founder and director of strategic partnerships at Advisen, added: "Arium enables analysts and executives to visualize the business relationships that underlie casualty catastrophes and to map them to an insurer's or a reinsurer's own portfolio of casualty business.

“This partnership leverages the strengths of both companies to bring insurers and reinsurers an important new tool to manage their casualty accumulations."