Karen Clark & Company’s RiskInsight Open Loss Modeling Platform Introduces Advanced Tools

The new release includes global mapping capabilities, more detailed and interactive underwriter and CEO dashboards, and significantly advanced model-building tools.

(Image source: U.S. Forest Service/Mike McMillan.)

Karen Clark & Company (KCC, Boston) has released the R14 update to its RiskInsight open loss modeling platform, which includes enhanced global mapping capabilities, more detailed and interactive underwriter and CEO dashboards, and significantly advanced model-building tools, according to a vendor statement.

In RI4, insurers and reinsurers can build hurricane and earthquake models anywhere in the world by adding custom event catalogs and damage functions appropriate for specific peril regions, the vendor statement relates. RiskInsight’s model-building tools, HazardMapper and DamageRatesManager have been enhanced in RI4 to make it easier for model builders to create high resolution probabilistic catastrophe models reflecting their own knowledge, expertise and views of risk.

Eric Letourneau, SVP, QBE Group.

Eric Letourneau, SVP, QBE Group.

RI4 includes detailed global soil maps and terrain datasets covering all countries and territories, according to the vendor’s description. Modeling experts can simply select the scientific intensity formulas most appropriate for the specific peril region from a dropdown box. For example, RI4 includes dozens of earthquake attenuation functions incorporating the collective scientific expertise on ground motion for all types of seismic sources, the vendor statement asserts.

The RI4 financial module has global application and is operational for all peril regions, the vendor says. To create a new model, only need an event catalog and set of damage functions, the KCC statement asserts. The vendor says that advanced modeling experts can build and customize new models in a matter of weeks.

“We’ve already started building catastrophe models on the RiskInsight open loss modeling platform, and RI4 promises to make that process even more efficient,” comments Eric Letourneau, senior VP, QBE Group. “A dynamic global company like QBE requires transparent models and the most advanced tools for our pricing and risk management decisions. It’s still the early stage, but RI4 RiskInsight could represent a significant innovation in the catastrophe modeling space.”

Efficient Platform

“External stakeholders, such as rating agencies and regulators, now expect (re)insurers to take ownership of the risk and not just rely on third party model output,” comments Glen Daraskevich, senior VP, KCC. “RI4 is the most efficient platform for companies to fully understand, customize and control their catastrophe model assumptions. Only with the full transparency available in RiskInsight can companies truly verify the credibility of the information driving their loss estimates.”

Glen Daraskevich, SVP, Karen Clark & Co.

Glen Daraskevich, SVP, Karen Clark & Co.


RI4 makes it straightforward for insurers to refine the model damage functions utilizing their own claims data and other information, the KCC statement says. Insurers can directly access and refine the Reference Model damage functions to produce closer alignment between modeled and actual loss experience, according to the vendor.

“The catastrophe model damage functions are expressed as the ratio of the financial loss to a property divided by the replacement value of that property,” Daraskevich adds. “But each insurer has different insurance-to-value assumptions, policy conditions, and claims handling practices. This means that the damage to a specific property will result in a different claim and loss amount depending on which insurer underwrites the property.”

KCC reports that RiskInsight exposure analytics have also been significantly enhanced with RI4, asserting that with just a few clicks, underwriters can generate custom dashboards reports, including interactive maps of exposures and market shares, data quality scores, and dozens of histograms illustrating construction, occupancy, year built, and other metrics. The 100 year Characteristic Event (CE) profiles—unique to RiskInsight—are automatically displayed on the dashboard reports, and enable underwriters to quickly see the correlations in their portfolios, the vendor says.

Fast, Interactive Maps

The RI4 maps are fast and interactive so underwriters can zoom in to see increasingly higher resolution data down to individual locations, KCCs. Data can be aggregated at different levels of geographic resolution and compared across different time periods.

“We’ve listened very carefully to our clients, and RI4 is designed for modeling experts who want full transparency on model assumptions and the flexibility to build sophisticated custom models efficiently and scientifically,” comments Karen Clark, KCC co-founder and CEO. “We’re extremely pleased and excited to deliver such a powerful innovation and to be working with industry leaders who are ready to implement the new generation of open loss models and risk management tools.”

Anthony R. O’Donnell // Anthony O'Donnell is Executive Editor of Insurance Innovation Reporter. For nearly two decades, he has been an observer and commentator on the use of information technology in the insurance industry, following industry trends and writing about the use of IT across all sectors of the insurance industry. He can be reached at AnthODonnell@IIReporter.com or (503) 936-2803.

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