Climate-KIC project revolutionises the catastrophe modelling market
In what is hailed as the most significant development in the modelling of financial losses as a result of natural catastrophes for 20 years, Climate-KIC has officially launched the Oasis Loss Modelling Framework last week (29 January 2014).
The new Oasis framework is a software package open to anyone with an interest in creating new catastrophe risk models, with modules available for specific catastrophes.
Climate-KIC and its partners have developed a number of commercially available models for:
- Malaysia floods, tropical extreme precipitation, transport vulnerability, insurance policies – Imperial College London
- Fire in Brazil – ARIA
- European storms – CEA/IPSL
- Wind and storms in France – CLIMPACT/METNEXT
- Rainfall vulnerability in the Netherlands – Delft University of Technology
- Flood vulnerability in the Netherlands – DELTARES
- Central European floods – Potsdam Institute for Climate Impact Research
Richard Templer, director of Climate-KIC’s UK centre, said: “The models on flooding, storms and fire are particularly timely and bring innovation to the insurance industry and other risk management.”
“The Oasis framework makes a signification contribution in modelling natural catastrophe losses. I am delighted that Climate-KIC has enabled this activity from the outset,” Templer said.
Although the insurance industry is expected to be the main user of Oasis, the package can be useful to anyone who is interested in natural catastrophes, not just financial services, but also risk managers in large corporations, governments and inter-governmental bodies.
The project has received €2.8 million in funding from Climate-KIC. It is now co-managed by group of 21 insurers, reinsurers, brokers and Lloyd’s of London through a not-for-profit company.
A revolution in the catastrophe modelling market
Dickie Whitaker, Project Director of the Oasis Loss Modelling Framework explains, “Oasis allows you to get your own view of risk. Much as apps have revolutionised smart phones, so Oasis can revolutionise the market for catastrophe models.”
Oasis is designed to operate as a set of plug-and-play web services, which can be developed to meet many and various needs.
For the insurance industry, the potential benefits include:
- Better informed risk selection, pricing and capital allocation
- More focussed reinsurance negotiation
- Support for regulatory compliance
- Wider choice, greater transparency and reduced cost in modelling
Click here for the full press release.