Global data analytics and technology provider Verisk has launched its Next Generation Models (NGM), which will be implemented by insurers and global reinsurers to evaluate risks and anticipate insured losses from extreme events more accurately.
The suite of 100+ models is now available on its catastrophe risk management software platform, Touchstone.
Verisk’s Touchstone and newly released Next Generation Models provide insurers and reinsurers with state-of-the-art resources to boost the capability to assess and price intricate risk, and to fine-tune reinsurance tactics for risk transfer.
The benefits of Verisk’s NGM include:
- Risk assessment. NGM provides the industry with a more complete and accurate view of risk, resulting in enhanced estimates of technical prices, more refined differentiation of risk for sub-perils within models, and better representation of tail risk.
- Policy terms and conditions. This advancement includes expanded capabilities for supporting complex insurance policy structures. These methodologies offer a more comprehensive representation of market terms and conditions, and better representation of uncertainty and geospatial dependencies in loss accumulation.
- Comprehensive risk management. NGM offers a deeper understanding of uncertainty and a more comprehensive and sophisticated solution for natural catastrophe risk management. This enables insurers and reinsurers to better analyze, understand, and mitigate the impact of natural disasters on their business operations.
- Financial modeling improvements. The next generation financial module in NGM delivers an accurate and reliable global view of risk across the insurance industry.
- Enhanced workflows. NGM has redesigned workflows in the loss calculation to reflect policy language and the actual flow of losses more correctly into policy structures, making loss results more accurate and more reflective of reality while also making preparing and modeling risk easier.
The insurance industry is evolving, creating new and innovative methods for writing policies in a more complex risk environment.
The release of NGM is the next step in our ongoing commitment to making societies more resilient and helping the insurance industry provide protection to their clients when they are impacted by the devastating impacts of natural catastrophes.
Rob Newbold, president of Extreme Event Solutions at Verisk
By rebuilding the financial modelling framework that sits behind Verisk’s catastrophe models, the platforme are providing the industry with more flexible and robust tools for underwriting, pricing new business, and managing portfolio risk.
NGM will also serve as the basis for our cloud-native platforms which will bring further improvements in both insurance and reinsurance workflows.
This launch marks the first successful effort by a catastrophe modelling firm to bring its full suite of models to a next-generation modelling framework.
With NGM, Verisk noted that it is redefining the standards for risk assessment, providing insurers and reinsurers with the tools they need to make informed decisions and mitigate the complexity of modelling potential losses effectively.
The use of catastrophe models is important for decision-making in the dynamic risk landscape of today’s insurance market.
Verisk’s Touchstone and newly released Next Generation Models provides insurers and reinsurers with state-of-the-art resources to boost the capability to assess and price intricate risk, and to fine-tune reinsurance tactics for risk transfer.
The revamped financial framework improves the ability to accommodate complex policy terms and model uncertainty, facilitated by streamlined exposure coding and more efficient workflows. The insights derived from these models supports making better-informed decisions and managing the risk inherent in portfolios.
by Peter Sonner
