Nasdaq Risk Modelling for Catastrophes is a Software as a Service (SaaS) platform that opens up access to a vivid cat risk modelling ecosystem for re/insurance firms, brokers and financial institutions.
Risk is increasingly complex and connected, and requires the integration of multiple views and broader coverage of risks.
This integration will provide consolidated access to over 300 risk models offered through Nasdaq’s platform, in addition to more than 400 existing risk models already provided by Moody’s RMS.
A recent preview of the integrated service featured Fathom’s US flood model running in parallel with Moody’s RMS US Flood Model demonstrating how customers can build a unified view of risk by combining models across different vendors within a single modeling application.
When the solution is fully developed and subject to the necessary agreements being put in place between RMS and its partners for the integration, and for customer licenses, customers will be able to use Moody’s RMS Intelligent Risk Platform applications, such as Risk Modeler, UnderwriteIQ, and TreatyIQ, run their own models, and have access to third-party models running on the Nasdaq platform, which is based on the Oasis Loss Modeling Framework (LMF).
Moody’s RMS announces that two new modeling engines will initially be integrated into the Intelligent Risk Platform to achieve unified model execution:
A new Moody’s RMS open modeling engine designed to integrate with external modeling platforms, such as Nasdaq Risk Modelling for Catastrophes, allowing direct connection to the Intelligent Risk Platform for seamless execution of third-party risk models available in the Nasdaq environment alongside Moody’s RMS risk models.
A new, fully integrated Moody’s RMS native modeling engine designed to allow integrated custom models, including our customers’ home-grown models, to be executed within the Intelligent Risk Platform. The native modeling engine can directly utilize selected model execution capabilities and data formats within the Intelligent Risk Platform to build risk models that may not be possible to construct with other modeling frameworks.
The market is increasingly utilizing catastrophe models from multiple vendors to inform risk selection, risk pricing, and portfolio management decision-making.James Lay, Senior Director at Nasdaq
“We believe that greater integration between the Nasdaq Risk Modelling for Catastrophes platform and the Intelligent Risk Platform will deliver enhanced benefits and efficiencies for our clients, and the reinsurance marketplace, while maintaining the independence of Nasdaq in the market”.
With this integration, Nasdaq customers will benefit from simpler access to modeling using the Moody’s RMS Intelligent Risk Platform data schema and data conversion functions that accept both Open Exposure Data (OED) and Exposure Data Module (EDM) formats and then simplify risk transfer using Results Data Module (RDM).
Oasis was established to increase choice in catastrophe modeling; it also has a key role to curate and promote standards. It is clear that this move will help both of those goals.
The Nasdaq agreement helps create a trusted environment and independence for all model providers, as well as protecting individual model intellectual property. Equally, because Moody’s RMS is using standards encompassed by Oasis open-source software, this will help support the functions that Oasis exists to perform.
The science and technology to make every risk known is continually evolving. At the genesis of the Intelligent Risk Platform, our intent was to unify risk analytics.Cihan Biyikoglu, Executive Vice President, Product, Moody’s RMS
Unified risk modeling with the new architecture is a critical step forward in that direction. The upcoming unified modeling capabilities within the Intelligent Risk Platform will not only simplify the great infrastructural complexity of data format conversion and enable many more customers to have access to multiple views of risk, but I believe will also accelerate industry innovation in the risk analytics space.
By opening the Intelligent Risk Platform to include third-party models, companies will be able to blend and group Moody’s RMS, Oasis, or their own risk models to better enable unified views of risk, improve modeling efficiency, and gain a unified modeling approach across all insights, systems, and solutions.
by Yana Keller