Lockton Re Selects Verisk U.S. Agricultural Risk Models to Develop New (Re)Insurance Solutions
Lockton Re has partnered with Verisk (Nasdaq: VRSK) to develop new agricultural (re)insurance products using Verisk's U.S. crop risk modeling solutions. The collaboration will leverage Verisk's Multiple Peril Crop Insurance and Crop Hail Model to assess climate change impacts on crop production and potential losses. The models provide comprehensive insights through 10,000-year stochastic event catalogs, considering factors like crop genetics, yields, prices, weather data, and policy conditions. This initiative aims to advance risk management in the U.S. crop insurance market, where indexed insurance products represented 12.4% of MPCI premium in 2023.
Lockton Re ha intrapreso una partnership con Verisk (Nasdaq: VRSK) per sviluppare nuovi prodotti di (ri)assicurazione agricola utilizzando le soluzioni di modellazione del rischio delle colture di Verisk negli Stati Uniti. La collaborazione sfrutterà l'Assicurazione per Perdite Multiple delle Colture e il Modello di Grandine sulle Colture di Verisk per valutare gli impatti dei cambiamenti climatici sulla produzione agricola e sulle potenziali perdite. I modelli forniscono approfondimenti completi attraverso cataloghi di eventi stocastici di 10.000 anni, considerando fattori come la genetica delle colture, i rendimenti, i prezzi, i dati meteorologici e le condizioni delle polizze. Questa iniziativa mira a migliorare la gestione del rischio nel mercato dell'assicurazione delle colture negli Stati Uniti, dove i prodotti assicurativi indicizzati rappresentavano il 12,4% del premio MPCI nel 2023.
Lockton Re se ha asociado con Verisk (Nasdaq: VRSK) para desarrollar nuevos productos de (re)aseguramiento agrícola utilizando las soluciones de modelado de riesgo de cultivos de Verisk en EE. UU. La colaboración aprovechará el Seguro de Cultivos de Múltiples Peligros y el Modelo de Granizo para Cultivos de Verisk para evaluar los impactos del cambio climático en la producción de cultivos y las posibles pérdidas. Los modelos ofrecen información completa a través de catálogos de eventos estocásticos de 10,000 años, considerando factores como la genética de los cultivos, los rendimientos, los precios, los datos meteorológicos y las condiciones de las pólizas. Esta iniciativa busca avanzar en la gestión de riesgos en el mercado de seguros agrícolas en EE. UU., donde los productos de seguros indexados representaron el 12.4% de la prima del MPCI en 2023.
록턴 리는 베리스크 (Nasdaq: VRSK)와 협력하여 베리스크의 미국 농작물 위험 모델링 솔루션을 활용한 새로운 농업 (재)보험 제품을 개발했습니다. 이번 협력에서는 베리스크의 다중 위험 농작물 보험과 농작물 우박 모델을 사용하여 기후 변화가 농작물 생산 및 잠재적 손실에 미치는 영향을 평가할 것입니다. 이 모델은 농작물 유전자, 수확량, 가격, 기상 데이터 및 정책 조건과 같은 요소를 고려하여 10,000년 이벤트 카탈로그를 통해 포괄적인 통찰력을 제공합니다. 이번 이니셔티브는 2023년 MPCI 프리미엄의 12.4%를 차지하는 지수 보험 상품이 있는 미국 농작물 보험 시장에서 위험 관리를 발전시키는 것을 목표로 합니다.
Lockton Re s'est associé à Verisk (Nasdaq: VRSK) pour développer de nouveaux produits de (ré)assurance agricole en utilisant les solutions de modélisation du risque des cultures de Verisk aux États-Unis. La collaboration tirera parti de l'Assurance des Cultures à Périls Multiples et du Modèle de Grêle sur les Cultures de Verisk pour évaluer les impacts du changement climatique sur la production agricole et les pertes potentielles. Les modèles fournissent des analyses complètes à travers des catalogues d'événements stochastiques de 10 000 ans, tenant compte de facteurs tels que la génétique des cultures, les rendements, les prix, les données météorologiques et les conditions politiques. Cette initiative vise à faire progresser la gestion des risques sur le marché de l'assurance agricole aux États-Unis, où les produits d'assurance indexés représentaient 12,4 % de la prime MPCI en 2023.
Lockton Re hat eine Partnerschaft mit Verisk (Nasdaq: VRSK) geschlossen, um neue landwirtschaftliche (Rück)versicherungsprodukte mit den Risikomodellierungslösungen von Verisk für US-amerikanische Kulturen zu entwickeln. Die Zusammenarbeit wird Verisks Versicherung für Mehrgefahren in der Landwirtschaft und die Hagelschadenversicherung für Kulturen nutzen, um die Auswirkungen des Klimawandels auf die Produktion von Kulturen und potenzielle Verluste zu bewerten. Die Modelle bieten umfassende Einblicke durch stochastische Ereigniskataloge über 10.000 Jahre hinweg und berücksichtigen Faktoren wie die Genetik der Pflanzen, Erträge, Preise, Wetterdaten und Versicherungsbedingungen. Diese Initiative zielt darauf ab, das Risikomanagement im US-Markt für landwirtschaftliche Versicherungen zu verbessern, wo indexbasierte Versicherungsprodukte 2023 12,4% der MPCI-Prämien repräsentierten.
- Strategic partnership with Lockton Re expands Verisk's market reach in agricultural risk modeling
- Growing market opportunity in U.S. crop insurance sector with indexed products gaining market share
- Technology adoption addressing evolving climate-related risks creates new revenue streams
- None.
Insights
This strategic collaboration between Lockton Re and Verisk represents a significant advancement in agricultural risk modeling, particularly timely given the growing impact of climate change on crop insurance. The partnership targets a substantial market opportunity, with parametric products already capturing
The integration of Verisk's sophisticated modeling tools, including the 10,000-year stochastic event catalogs, positions both companies to capitalize on the evolving crop insurance market. This collaboration enhances Verisk's market position in the agricultural analytics sector and could drive increased adoption of their modeling solutions across the industry.
While the immediate revenue impact may be modest relative to Verisk's
BOSTON, Nov. 20, 2024 (GLOBE NEWSWIRE) -- Lockton Re, a leading global reinsurance broker, has announced a strategic collaboration with Verisk (Nasdaq: VRSK), a leading global data analytics and technology provider, to bring new (re)insurance products to the market. Lockton Re will use Verisk’s agricultural risk modeling solutions – including Verisk's Multiple Peril Crop Insurance (MPCI) and Crop Hail Model for the U.S. – to understand how climate change and meteorological factors are impacting crop production and potential insured losses.
Given significant changes to premium rates and commodity rates, simply relying on historical losses to assess today’s risk is insufficient for reinsurers and insurers. Verisk’s models offer comprehensive, scientific and stochastic insights into the risks facing the U.S. crop industry today, supporting clients seeking to maximize profitability and address the challenges of actuarial pricing in the market.
Verisk’s models, including the U.S. Crop Hail Model, are unique in that they simulate hailstorms based on 10,000-year stochastic event catalogs. Lockton Re will utilise Verisk’s models for the most realistic view of loss scenarios, factoring in crop genetics, yields, prices, exposure, weather data, policy conditions and management practices.
"We’re embarking on a journey to advance risk management options for the U.S. crop (re)insurance industry,” said Kris Lynn, senior broker and agriculture practice leader at Lockton Re. “By incorporating advanced climate data and understanding the global impact of El Niño–Southern Oscillation (ENSO) on crop production, we’re able to offer reinsurers a data-driven approach to risk transfer and product innovation that hasn't been available before. There has been slow adoption of the data and analytics necessary to keep up with changing risk landscapes. We aim to change that."
"Lockton Re brings a fresh, disruptive perspective to the U.S. crop market, and we’re excited to support its innovative approach,” said Oscar Vergara, business development manager, agricultural modeling solutions for Extreme Event Solutions at Verisk. “By using our crop models, Lockton Re will be able to provide more informed, data-backed solutions that account for everything from hail damage to the effects of extreme weather events fueled by climate change. Reinsurers and insurers need a robust, up-to-date risk assessment model to help maximize profit within risk tolerance level."
Advancing indexed solutions for agriculture risk
Verisk’s crop models will support Lockton Re’s development of new indexed products that will be designed to help (re)insurers address the increasing risks of a changing climate on agriculture production. Verisk’s models provide the (re)insurance industry with a reliable solution to understand individual crop policy risks. Using tools like Verisk’s Fund Designation Service, helps portfolio risk managers use the output to analyze the marginal impact on their profitability of adding new states for which underwriting history may be limited and optimize designation alternatives.
The U.S. crop insurance market has seen significant growth in recent years, with indexed insurance products—such as those Lockton Re is developing—gaining market share. According to the National Crop Insurance Services (NCIS), parametric products accounted for as much as 12.4 percent of the MPCI premium in 2023 across the U.S., with even higher shares in key states.
Lynn concludes, “As climate change continues to impact crop yields globally, the collaboration between Lockton Re and Verisk will provide insurers and reinsurers with the tools and insights they need to navigate an increasingly volatile landscape. This collaboration marks a new chapter in crop insurance, driven by data, analytics, and a commitment to improving risk transfer solutions.”
###
About Lockton Re:
Lockton Re is a leading global reinsurance broker, delivering comprehensive risk transfer solutions and expert advisory services. With an emphasis on innovation and disruption, Lockton Re helps insurers and reinsurers manage risk in an evolving market.
About Verisk
Verisk (Nasdaq: VRSK) is a leading strategic data analytics and technology partner to the global insurance industry. It empowers clients to strengthen operating efficiency, improve underwriting and claims outcomes, combat fraud and make informed decisions about global risks, including climate change, extreme events, sustainability and political issues. Through advanced data analytics, software, scientific research and deep industry knowledge, Verisk helps build global resilience for individuals, communities and businesses. With teams across more than 20 countries, Verisk consistently earns certification by Great Place to Work and fosters an inclusive culture where all team members feel they belong. For more, visit Verisk.com and the Verisk Newsroom.
FAQ
What is Verisk's new partnership with Lockton Re for agricultural risk modeling?
How does Verisk's VRSK crop hail model work?
What percentage of MPCI premium did parametric products account for in 2023?
