RMS has released the third generation of our cyber risk analytics solution. RMS Cyber Solutions Version 3 represents a substantial advance in RMS cyber risk management. It adds new capabilities for higher resolution underwriting and probabilistic portfolio risk management to the existing exposure reporting and accumulation management functionality within the RMS Cyber Accumulation Management System.
Version 3 now supports a full range of applications from underwriting and risk selection through to portfolio management and (re)insurance applications. The solution also integrates many diverse sources of data and new analytical techniques to bring the latest insights into cyber risk, with a threefold increase in the number of cyber incidents in the internal loss experience catalog. Visit RMS Owl for an Executive Briefing on RMS Cyber Solutions Version 3.
Version 18 offers a wealth of new opportunities: more than 10 new and updated models being released, geocoding and exposure data updates for 85 countries, updates to RiskLink® and RiskBrowser®, the introduction of RiskAssessor™ 3.0, and much more. For the Asia-Pacific region, the growing model suite adds new peril models for a range of countries and updates existing models in Australia, India and South Korea. Version 18 also sees the introduction of new innovations for flood risk in the region such as modeling typhoon-driven inland flood and storm surge, as well as the impacts of seasonal and monsoon rains, in the RMS Philippines Typhoon and Flood Model.
RiskAssessor 3.0 extends high-fidelity hurricane modeling capabilities beyond the U.S. to all regions across the RMS North Atlantic Hurricane Models. Building in an East Pacific Basin event set, now included in the RMS North Atlantic Hurricane Models, offers broader geographic hurricane model coverage in Mexico and a complete country-wide solution for assessment of Mexico's windstorm risk. The storm surge model is being enhanced to ensure consistency with the upcoming RMS U.S. Inland Flood HD Model. With so much to explore, contact your RMS account representative for more details.
With the May 25 General Data Protection Regulation (GDPR) implementation deadline now passed, the insurance industry continues to grapple with the full implications of the regulation. There is still a lack of clarity as to the usage of location data across all stages of the insurance value chain. RMS recently partnered with Insurance Day to bring together data protection experts from across the U.K. and London insurance markets for a roundtable discussion.
Roundtable participants shared their concerns that unless the market addresses how it treats location data under the new GDPR regulations, its ability to get the best of its analytics capabilities will be seriously impaired. Read more about the GDPR roundtable discussion on how the market could manage the balancing act between innovation, enhanced analytics, and compliance with GDPR.
RMS recently held three events during June in Tokyo, Seoul, and Taipei as part of our In:Site series, bringing the latest RMS insights to clients. At the Tokyo event, with the recent launch of the RMS® Japan Earthquake and Tsunami HD Model, attendees discovered the background supporting the model. They also learned about the challenges and new approaches adopted to produce a model that provides the latest view of both earthquake and tsunami for the country.
There was also great interest in cyber risk modeling and the introduction of RMS Cyber Solutions Version 3, not to mention using the upcoming RMS U.S. Inland Flood HD Model to capitalize on new opportunities in a developing private U.S. flood insurance market. Read the RMS blog about risks and rewards in the Japanese market.
RMS has released the 2018 North Atlantic Hurricane Season Outlook report documenting the preseason activity forecasts and the supporting key oceanic and atmospheric factors. As of the beginning of June, most forecast agencies and meteorological organizations predicted near-average hurricane activity in the North Atlantic during 2018.
But as the RMS outlook report explains, the latest seasonal hurricane forecasts are a balancing act. They take into account the competing impacts of several major oceanic and atmospheric influences, namely the status of the El Niño-Southern Oscillation (ENSO) and Atlantic sea surface temperatures (SST). Forecasts favor ENSO-neutral conditions during the September to November period, with a 50 percent probability of a transition to an El Niño phase by the winter of 2018-19. El Niño is associated with increased Atlantic wind shear that historically inhibits tropical cyclone development in the basin. ENSO-neutral conditions would, in the absence of any other factors, result in average activity. There's a full overview of the hurricane season outlook on the RMS blog.
RMS Event Response monitors catastrophe events across the world, ranging from tropical cyclones and earthquakes to terrorist and cyber attacks. The goal is to provide fast and comprehensive solutions to assess and estimate potential impacts and losses to the (re)insurance industry during and after catastrophic events. But do you know the event response activities that the industry engages with and how RMS Event Response can help? And are you familiar with all of the products and services that RMS Event Response offers? Log into RMS Owl and watch a short interactive presentation to get answers to your event response questions.
At the sixth annual Reactions Latin America Insurance and Reinsurance Awards, held at the Four Seasons in Miami on May 24, RMS was named the Latin America Risk Modeler of the Year for the second year in a row. This award recognizes our delivery of best-in-class insights for the region's (re)insurance industry during last year's catastrophic events, as well as our continued commitment to helping (re)insurance businesses in the region.
About the award, Christopher Munro, managing editor of Reactions (part of Euromoney Institutional Investor), said, "Following on from last year's catastrophes, our judges had a tough task in deciding who should win the Risk Modeler of the Year category at the Reactions Latin America Awards. But ultimately, the panel decided that RMS should be rewarded for the support and services it provided to the Latin American (re)insurance industry in 2017. We at Reactions offer our congratulations to RMS for winning this category for the second year in a row." Read the announcement of our win in the RMS Newsroom.
Two new countries, Italy and the Republic of Ireland, have been added to the RMS Europe Inland Flood HD Models, extending the coverage to 15 countries. The models integrate all major sources of inland flooding, representing the full spectrum of fluvial and pluvial flood risk.
Italy is highly exposed to flood risk, ranging from localized flash floods to widespread river flooding, with 1-in-100-year losses that could easily reach and exceed €10 billion. But meteo-hydrological conditions driving Italy's flood are largely uncorrelated with most other European countries because the Alps are an important orographic boundary. With the insurance market looking at business growth, while maintaining a low level of correlation in losses or high diversification, Italy could be a favorable country to support diversified insurance growth.
For Ireland, flood is second only to windstorm in terms of losses from natural perils. Ireland and the U.K. could potentially be simultaneously impacted by both fluvial and pluvial floods. Flood can accumulate into large losses especially because of prolonged rainfall events, which can cause problems when most large insurers in the U.K. also write business in Ireland. Find out more about the RMS Europe Inland Flood HD Models.
The latest edition of EXPOSURE is essential reading for risk professionals, as we look back at what can be learned from last year's events and look forward to the future, including new challenges faced by the global risk management community and new opportunities to capitalize on. From a review of HIM to digital transformation revolutionizing underwriting and risk management, EXPOSURE offers a unique perspective with a clear mission "… to provide insight and analysis to help insurance and risk professionals innovate, adapt, and deliver."
EXPOSURE investigates the exceptional 2017 North American wildfire season and asks what needs to happen next to help insurers better manage this increasing risk. From cyber as a "peak peril," innovations to increase resilience in the Caribbean, and the growth in hyperlocal weather data, click to access the latest articles from over forty articles on the EXPOSURE website.