RMS Releases Auditable Custom Vulnerability Modeling Solution

The new solution enables the insurance industry to generate a more distinct and expansive view of hurricane risk in real-time to enhance underwriting processes and risk management.

(Image source: NOAA.)

RMS, a Newark, Calif.-based global risk modeling and data analytics firm, has released of RMS RiskAssessor 2.0, an new solution that the vendor describes as engineering-based technology developed for insurers and reinsurers to integrate their own distinct view of vulnerability into their modeling workflows. RMS says that the solution uses an open modeling framework that enables users to generate a new vulnerability risk currency that can then be easily shared across the market.

“Insurance companies today face an intensely competitive market that requires a more informed approach to pricing and risk differentiation, however, today’s catastrophe models face limitations,” comments Michael Young, senior director, product management, RMS. “Our clients want to distinguish themselves from the pack and with RiskAssessor 2.0 they have the opportunity to represent their own unique views to enhance their insights and maximize profits,”

“RiskAssessor 2.0 brings a fully featured ability to embrace custom vulnerability modeling for the key peril of Atlantic hurricane risk that companies have not had before, and we look forward to expanding this capability to other perils and regions in the near future,”

An RMS statement explains that the open vulnerability modeling functionality in RiskAssessor allows insurance companies to do one of two things:

Companies that are investing in detailed loss control inspections can turn proprietary inspection data into actionable risk assessments or pricing decisions via the 56 distinct wind-related variables and the RMS virtual wind tunnel technology included in RiskAssessor 2.0. Other companies may choose to take advantage of the flexibility of the custom vulnerability modeling framework to create new classes of risk tuned to their unique business profiles

Regardless of the use case, the value of the custom view of risk can be shared with other risk transfer partners in the market because it allows users to store and share custom vulnerability curves directly from within the RMS Exposure Data Module (EDM). RiskAssessor 2.0 unlocks these custom vulnerability capabilities for all RMS modeling workflows including RiskLink, RiskBrowser and now, Risk Modeler on the RMS(one) platform.

RMS Launches ‘Cyber-Physical’ Risk Modeling for Property Insurers

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.

Leave a Comment