Catastrophe modelling - Risk managers invited to take part in new venture aiming to cut costs by half
A co-operative venture involving 21 leading insurers and brokers has launched an initiative called Oasis, which seeks to cut the cost of catastrophe modelling by 50% within five years. The owners, which include Lloyd’s, Allianz, Zurich, Aon, Willis and Guy Carpenter, say it should also improve the transparency and flexibility of the models.
It is the first major launch of this type for nearly 20 years, and others such as Captive insurers and corporate risk managers will be invited to take part. Unlike the three players that have dominated the catastrophe modelling market up to now, Oasis is not-for-profit
“It is clearly key for the market to have model transparency and choice. Oasis, an open framework, adds to the pool of knowledge and gives choice to the market,” says Tom Bolt, Director of Performance Management at Lloyd’s.
Initially, a number of commercial models will be available, including four for flood, (two for Great Britain plus Australia); three for earthquake (USA, North Africa and Middle East), Cascadia tsunami and Brazilian bush fire.
Organisations such as universities are being invited to put their own models onto the framework. It is designed so that anyone who uses the models can examine the assumptions on which they are based and add their own data if they wish.
“Oasis allows you to get your own view of risk. Much as apps have revolutionised smart phones, so it can revolutionise the market for catastrophe models,” says project director Dickie Whitaker.