RMS releases updated models
Catastrophe risk management firm RMS has released the latest version of its Europe windstorm and North Atlantic hurricane models.
RMS said that the Europe windstorm models’ hazard and vulnerability components have been updated to strengthen risk selection and portfolio management capabilities. It has also added a new view of risk reflecting climate variability, enabling companies to better understand windstorm variability and support Solvency II model validation requirements.
The North Atlantic Hurricane Models have new capabilities to manage coastal flood risk and have been fully updated with the latest science and data on hurricane activity, said RMS.
“RMS’s version 15.0 models deliver even sharper risk differentiation to help our clients further optimise their risk selection and more efficiently allocate capital,” said Matthew Grant, general manager, models and data at RMS. “We’ve built on the models’ existing methodology and incorporated several years of new data and scientific research to deliver the most accurate representation of the risk.”
Grant added: “By adding the climate variability component we’ve provided our clients with a transparent model validation process to meet Solvency II regulations, as well as a means to better understand how historical storm variability can affect their modelled losses.
“Since storm activity in recent years has been relatively quiet and most insurers’ claims records only date back 10 to 20 years, the new climactic view provides our clients with an important perspective to develop a more complete view of the risk.”
