RMS Advances Climate Risk Modeling and Moves More Models to High Definition

Rhea-AI Summary

RMS, a Moody's Analytics subsidiary, has announced the release of four new High Definition models: Europe Windstorm, North America Winterstorm, North America Severe Convective Storm, and Terrorism. These advanced models enhance risk analysis and catastrophe risk quantification through a simulation-based framework. The Europe Windstorm model will cover 17 countries, including Finland and Liechtenstein, while the Terrorism model introduces improved financial analytics. These models are expected to be available in 2022 and 2023, significantly boosting RMS's capabilities in risk management.

Positive

• Introduction of four new High Definition models enhancing risk analysis for various storm events and terrorism.
• New models incorporate high-fidelity simulation techniques for better catastrophe risk quantification.
• Expansion of the Europe Windstorm model to include 17 countries, enhancing coverage.
• Improved financial model capabilities with the Terrorism HD Model, allowing multi-region analysis.

Negative

• None.

Europe Windstorm, North America Winterstorm, North America Severe Convective Storm and Terrorism Models all move to High Definition (HD)

NEWARK, Calif.--(BUSINESS WIRE)-- RMS^®, a Moody’s Analytics company and world-leading risk modeling and solutions company, today announces it will be releasing four new High Definition™ (HD) models, including Europe Windstorm, North America Winterstorm (WT), North America Severe Convective Storm (SCS), and Terrorism.

RMS HD Models represent the next generation of risk modeling, delivering deeper analysis and granularity from Moody’s. The HD probabilistic models incorporate a high-fidelity, simulation-based framework for modeling event frequency and severity, to provide a major step forward in the quality of catastrophe risk quantification. The framework allows for event footprints to be represented more realistically across larger event sets.

The new RMS Europe Windstorm HD Model further enhances the current model and will cover 17 countries, adding Finland and Lichtenstein. The HD model includes a climate variability view and has expanded storm surge analytics to include the U.K., Ireland, France, and Belgium. Storm clustering will be modeled natively within the HD framework, together with an option to run the model without clustering. Industrial facilities, builders’ risk, and marine cargo will also all be covered. With the new model RMS will be able to offer a complete High-Definition solution for all atmospheric climate perils across Europe including Europe SCS HD Model, Europe Windstorm HD Model - and the Europe Flood HD Model, which was particularly relevant during the Berndt flooding in 2021.

The exceptionally high insured losses from the U.S. severe winter weather event of February 2021 placed the winter storm peril in sharp focus. Both the RMS North America Winterstorm and RMS North America SCS HD Models benefit from a simulation-based framework that better represents the time-dependent nature of SCS/WT event frequency and hazard. This includes event clustering, seasonality, and the representation of cumulative hazard such as multi-day SCS outbreaks, or the cumulative snow buildup on a building due to multiple snowfalls.

RMS launched its market-leading Terrorism Model in 2002, to help firms better manage exposed risks and quantify losses and casualties due to macro terrorism. As part of the suite of capabilities Moody’s provides clients, the new RMS Terrorism HD Model offers increased transparency in exceedance probability (EP) generation, with outputs and analysis processes consistent with other RMS HD models. Workflow improvements include expanded financial model capabilities, multi-region selections, property and workers compensation in a single analysis, and introduces selectable causes of loss: conventional, fire only, or chemical, biological, radiological, and nuclear (CBRN).

The planned general availability for the RMS Terrorism HD Model will be in 2022, Europe Windstorm HD Model in 2023, and North America Winterstorm and North America Severe Convective Storm in 2024.

Julie Serakos, Senior Vice President, Model Production Management, RMS, said: “The RMS High Definition Models are delivering a step-change in risk analysis across the insurance industry. All the technological capabilities within the RMS Intelligent Risk Platform™ support the RMS HD model enhancements for clients. These model announcements build on Moody’s continued commitment to bringing reliable and precise analytics to the modelers, underwriters, the C-suite, and across the industry. RMS has always invested in leading science and technology to ensure that clients have some of the best information available to help them with their risk decisions.”

END

About RMS

Risk Management Solutions, Inc. (RMS) a Moody’s Analytics company, shapes the world’s view of risk for insurers, reinsurers, financial services organizations, and the public sector. We empower organizations to evaluate and manage global risk from natural and man-made catastrophes, including hurricanes, earthquakes, floods, climate change, cyber, and pandemics. RMS models underlie the nearly US$2 trillion Property & Casualty industry and many insurers, reinsurers, and brokers around the world rely on RMS model science.

RMS helped pioneer the catastrophe risk industry, and continues to lead in innovation by offering unmatched science, technology, and 300+ catastrophe risk models. Leaders across multiple industries can address the risks of tomorrow with the RMS Intelligent Risk Platform™, the only open cloud with collaborative applications and unified analytics that can power risk management excellence across organizations and industries.

Further supporting the industry's transition to modern risk management, RMS spearheaded the Risk Data Open Standard (RDOS), a modern, open-standard data schema designed to be an extensible and flexible asset within modeling/analysis systems.

RMS is a trusted solutions partner, enabling effective risk management for better business decision-making across risk identification and selection, mitigation, underwriting, and portfolio management.

© 2022 Risk Management Solutions, Inc. RMS, the RMS logo, and RMS Risk Intelligence are trademarks of Risk Management Solutions, Inc. All other trademarks are property of their respective owners.

Visit RMS.com to learn more and follow us on LinkedIn and Twitter.

RMS is a subsidiary of Moody’s Corporation (NYSE: MCO) and operates as part of the Moody’s Analytics business segment. Moody’s Analytics is operationally and legally separate from the Moody’s Investors Service credit rating agency.

View source version on businesswire.com: https://www.businesswire.com/news/home/20220518005616/en/

Matthew Longbottom

+44 7584 333485

PRTeam@rms.com



Haggie Partners

+44 (0)20 7562 4444

rms@haggie.co.uk

Source: Risk Management Solutions, Inc.

FAQ

What new risk models has RMS announced for 2023?

RMS announced the release of the Europe Windstorm HD Model, North America Winterstorm HD Model, and North America Severe Convective Storm HD Model.

When will the North America Severe Convective Storm model be available?

The North America Severe Convective Storm HD Model is planned for release in 2024.

How does the new RMS Terrorism HD Model enhance risk analysis?

The Terrorism HD Model offers increased transparency in exceedance probability generation and improved financial modeling capabilities.

What countries will the new Europe Windstorm HD Model cover?

The Europe Windstorm HD Model will cover 17 countries, including Finland and Liechtenstein.

What is the significance of the simulation-based framework in RMS's new models?

The simulation-based framework allows for more realistic representation of event frequency and severity, improving catastrophe risk quantification.