Moody’s Risk Modelling Integrates More Data

Moody’s RMS^®, the global catastrophe risk modeling and solutions company is announcing that risk models from Applied Research Associates, Inc. (ARA), Fathom, and JBA Risk Management (JBA) are all to be made available as a technology preview on the Intelligent Risk Platform™ (IRP) from, following the integration of the IRP into the Nasdaq (Nasdaq: NDAQ) Risk Modelling for Catastrophes (NRMC) service.

Loss modeling is an essential part of pricing risks of course. Insurers are never quite sure where hurricanes and other catastrophe events will strike, but you can calculate the asset values in particular areas. This announcement builds on an earlier Moody’s RMS announcement on enhancing the IRP by integrating the NMRC service for Oasis Loss Modelling Framework based risk models.

When the solution is fully developed and subject to the necessary agreements being put in place between RMS and its partners for the integration, customers who subscribe to the solution will be able to use Moody’s RMS Intelligent Risk Platform applications such as Risk Modeler™, UnderwriteIQ™, and TreatyIQ™ for unified execution of Moody’s RMS models, as well as ARA, Fathom, and JBA Risk Management models, running on the Nasdaq modeling service based on the Oasis Loss Modelling Framework (LMF), and other custom models and modeling engines.

Jane Toothill, Managing Director at JBA Risk Management, said: “We are excited to see the integration of Moody’s IRP into Nasdaq’s NMRC as it means our suite of global flood models will be more easily accessible to mutual clients. The ability to run multiple models on the same platform will provide many benefits to the insurance and risk industries. Greater modeling flexibility, improved efficiencies, and streamlined costs of ownership will all make significant differences, and by helping clients build reliance and promote mitigation measures, insurers can better prepare themselves and their clients against potentially catastrophic events.”

Cihan Biyikoglu, Executive Vice President, Product, Moody’s RMS, said: “With this initiative we are hoping to create more opportunities for innovation in the global risk market, and we are delighted to be working with ARA, Fathom, and JBA. Moody’s RMS recognizes that customers often want to incorporate multiple models for a multitude of reasons, including hedging model risk and creating their own-view-of-risk for a differentiated risk strategy.

We are making this much easier for our clients by allowing them to consolidate their modeling systems into a single unified experience and limiting the burden of complex data conversion between different exposure and loss data formats. This will help them to free up IT budgets dedicated to maintaining multiple modeling environments, as well as allowing their catastrophe modelers better insights for risk selection, pricing, and transfer decisions. We are also working with additional model vendors and look forward to further announcements as this initiative continues to accelerate.”