Risk models can mute rising volatility, says Verisk

While reinsurers and cedants may often attempt to shout prices up or down depending on their agenda, risk modellers attempt to build a calming and anchoring position in the middle of the fray, arguing with facts, even when their telling won’t win friends.

“Prices are being talked up or down, it depends on the market,” Bernhard Reinhardt, a director at  Verisk in the consulting and client services in extreme event solutions, told Intelligent Insurer. The trick: to be rhetoric-deaf and “provide a consistent long-term perspective, an unbiased view—even if sometimes this view is not initially loved by market participants”.