AIR Worldwide Collaborates with RenaissanceRe to Develop Industry's First Probabilistic Model for Extreme Liability Events
BOSTON, April 9, 2018 — Catastrophe modeling firm AIR Worldwide (AIR) today announced that it is collaborating with RenaissanceRe, a global provider of reinsurance and insurance, as part of a joint effort to enhance the industry’s modeling of long-tail casualty risk. AIR Worldwide is a Verisk (Nasdaq:VRSK) business.
“Since our inception, RenaissanceRe has been at the forefront of applying science, engineering, and data to inform our independent view of risk,” said Ian Branagan, senior vice president and group chief risk officer at RenaissanceRe. “Incorporating third-party expertise from proven leaders such as AIR wherever appropriate is a key part of this process. We’re pleased to work with AIR to advance our industry’s ability to better understand how to model and manage casualty and specialty risk.”
As part of the collaboration, AIR is producing portfolio-specific casualty losses based on its innovative exposure management application, Arium. Arium’s scenario-based loss assessment framework enables companies to systematically measure portfolio loss potential and exposures to simulated scenarios representing both emerging risks and forward-projected historical events. AIR and RenaissanceRe will work closely to further refine the industry’s first fully probabilistic model for extreme liability events.
“We’re currently developing the industry’s most comprehensive model of liability risk to help companies understand the complex interconnections in their portfolios, resulting in a comprehensive assessment of potential future losses,” said Dr. Jay Guin, chief research officer, AIR Worldwide. “Collaborating with a global leader in risk management like RenaissanceRe is a great step forward in the development of our stochastic model. This model provides a forward-looking view of risk and will enable insurers and reinsurers to capture the full distribution of the frequency and severity of casualty catastrophes.”
“Arium is a powerful exposure management application designed to help companies evaluate liability accumulations and run casualty risk scenarios,” said Robin Wilkinson, vice president and managing director of casualty analytics at AIR Worldwide. “With Arium, insurers can analyze and quantify their exposure to simulated liability events and become more informed on what types of future events could cause significant losses to their portfolios. As Arium continues to evolve, the stochastic model will enable companies to understand and manage their casualty risk more thoroughly.”
About AIR Worldwide
AIR Worldwide (AIR) provides risk modeling solutions that make individuals, businesses, and society more resilient to extreme events. In 1987, AIR Worldwide founded the catastrophe modeling industry and today models the risk from natural catastrophes, terrorism, pandemics, casualty catastrophes, and cyber attacks globally. Insurance, reinsurance, financial, corporate, and government clients rely on AIR’s advanced science, software, and consulting services for catastrophe risk management, insurance-linked securities, site-specific engineering analyses, and agricultural risk management. AIR Worldwide, a Verisk (Nasdaq:VRSK) business, is headquartered in Boston, with additional offices in North America, Europe, and Asia. For more information, please visit www.air-worldwide.com.
RenaissanceRe Holdings Ltd. is a global provider of reinsurance and insurance that specializes in matching well-structured risks with efficient sources of capital. The Company provides property, casualty, and specialty reinsurance and certain insurance solutions to customers, principally through intermediaries. Established in 1993, the Company has offices in Bermuda, Ireland, Singapore, the United Kingdom, the United States, and Switzerland. For more information, visit www.renre.com.