Equinix partners with Lloyd’s to enhance cat risk modelling platform
California-based data centre operator Equinix has collaborated with Lloyd's and the Lloyd's Market Association (LMA) to improve its catastrophe risk modelling platform, The Oasis Loss Modelling Framework.
Developed over five years at a cost of $4 million and modelled using data shared by 10 managing agents, the framework is used for risk selection, pricing, assessing capital adequacy and measuring profitability.
The framework provides insurers in the catastrophe market access to a range of model providers from around the world. Moreover, the latest release of the framework has been made fully open source to encourage collaborations and will enable users to share data for improving their models.
Specialists from Equinix, Lloyd's and the LMA have come together to implement and test the system within Equinix's international business exchange data centre in London.
"The Oasis framework is ground-breaking in itself but really it's the nature of the collaboration that sets a new precedent. Equinix, Lloyd's and others have accelerated the creation of a market place for catastrophe models giving choice and the potential for deeper analysis to insurers," said Trevor Maynard, head of exposure management and reinsurance at Lloyd's.
Ken Curtis, LMA director, finance and risk, added: "The LMA fully supports these initiatives which will help to lead the way in catastrophe modelling for the market and should ultimately lead to cost savings for members."
Dickie Whitaker, the CEO of Oasis, commented: "Leaders in the catastrophe modelling field are realising the value of the new, extensible, scalable Oasis Platform and deploying high quality models. This opportunity realises a new range of cost effective transparent models coming to market."
"Equinix's ability to interconnect businesses and partners has led to the launch of something that has the power to change how an entire industry works,” said James Maudslay, global head of insurance of Equinix.
“As our business ecosystems continue to grow and more collaborations like this are formed across industry sectors, we will see more and more of this type of disruptive innovation – it's a very exciting time for Equinix and our customers.”
