Tech Update: Verisk Launches Next Generation Catastrophe Models
Verisk, the Jersey City, New Jersey-based data analytics and technology provider, has launched a suite of next generation catastrophe models.
Verisk’s suite of 100+ Next Generation Models (NGM) is designed to help insurers and reinsurers evaluate risk across the globe, using a new financial modeling framework that to reflect anticipated insured losses from extreme events more accurately than ever before.
These advances from Verisk’s Extreme Event Solutions business are now available on Verisk’s catastrophe risk management software platform, Touchstone.
“With NGM, Verisk is redefining the standards for risk assessment, providing insurers and reinsurers with the tools they need to make informed decisions and mitigate the complexity of modeling potential losses effectively,” the company said.
Verisk said the benefits of NGM include:
- Risk assessment. NGM provides the industry with a more complete and accurate view of risk, resulting in enhanced estimates of technical prices, more refined differentiation of risk for sub-perils within models, and better representation of tail risk.
- Policy terms and conditions. This advancement includes expanded capabilities for supporting complex insurance policy structures. These methodologies offer a more comprehensive representation of market terms and conditions, and better representation of uncertainty and geospatial dependencies in loss accumulation.
- Comprehensive risk management. NGM offers a deeper understanding of uncertainty and a more comprehensive and sophisticated solution for natural catastrophe risk management. This enables insurers and reinsurers to better analyze, understand, and mitigate the impact of natural disasters on their business operations.
- Financial modeling improvements. The next generation financial module in NGM delivers an accurate and reliable global view of risk across the insurance industry.
- Enhanced workflows. NGM has redesigned workflows in the loss calculation to reflect policy language and the actual flow of losses more correctly into policy structures, making loss results more accurate and more reflective of reality while also making preparing and modeling risk easier.
Verisk’s Touchstone and its newly released Next Generation Models provide insurers and reinsurers with the resources to assess and price intricate risk, while fine-tuning reinsurance tactics for risk transfer, the company said. Verisk explained that the revamped financial framework improves the ability to accommodate complex policy terms and model uncertainty, facilitated by streamlined exposure coding and more efficient workflows.
These models help re/insurers make better-informed decisions and manage the risks inherent in portfolios, the company added.
“By rebuilding the financial modeling framework that sits behind Verisk’s catastrophe models, we are providing the industry with more flexible and robust tools for underwriting, pricing new business, and managing portfolio risk,” commented ,” said Rob Newbold, president of Extreme Event Solutions at Verisk, in a statement. “NGM will also serve as the basis for our cloud native platforms which will bring further improvements in both insurance and reinsurance workflows.”
The Verisk Hurricane Model for the U.S. available as part of NGM has been approved for filing in Florida.
Source: Verisk