Karen Clark interview: the vital development of cat risk models

05-10-2020

Karen Clark interview: the vital development of cat risk models

Cat risk modelling pioneer Karen Clark, founder of KCC, shares her unique insights on the past, present and future of the discipline and its key role for re/insurance.

“We had to spend months explaining how the models worked and why they could trust them.” Karen Clark, founder, KCC.

· Clark, inventor of cat risk modelling, credits “early adopters” in the market for sticking with innovations 
· Hurricane Andrew marked “turning point” for industry trust in cat models
· Launch of cat bonds in 1996 paved the way for ILS market to develop
· Transparency of future models to drive greater confidence and usher in “new paradigm”

Industry-wide views on cat risk modelling shifted dramatically after loss figures of more than $13 billion for Hurricane Andrew were proved right. Re/insurers now acknowledge the discipline as a crucial part of business, but Clark has never stopped innovating and is already looking ahead at future cat risk needs.


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