With ModEx’s web-based model execution software, it is easier for clients to access COMBUS’s models. As a fully managed and hosted service, ModEx also lowers the IT costs for firms using COMBUS’s models.
COMBUS strive to provide clients with the most value from their models. Their multi-peril model offers a range of analysis options, including the choice of different perils and sub-perils, as well as different statistical approaches for modelling the frequency of catastrophes. However, upcoming changes to the scientific position on earthquake risk in Australia will impact firms’ reinsurance requirements. Firms will therefore need to investigate the sensitivity of their risk profile to changes in earthquake risk by analysing the impact of model version changes on their portfolios.
Running different versions of COMBUS’s multi-peril model would help firms better understand their exposure and reinsurance requirements, improving corporate governance and compliance with Solvency II and other regulatory frameworks. However, current deployment options do not allow multiple variations of the model to be run in parallel. This means a manual and time consuming deployment process for clients and a heavier administrative burden for COMBUS in terms of licensing and access provisions.
The lack of standardisation in the catastrophe modelling marketplace means that implementing new models can incur heavy IT and staff training costs. The benefit of adopting new models is therefore often offset by resource requirements around hosting and deployment. The open-source Oasis Loss Modelling Framework (LMF) has helped with this to a large extent, but implementing it in-house still requires signifi cant IT resource. To fully harness Oasis’s potential and gain access to a wider ecosystem of models, including COMBUS’s, many firms require a hosted catastrophe modelling solution.
In the past, implementing 5 different catastrophe risk models required 5 different systems, 5 different set ups and 5 different sets of training. With ModEx, (re)insurers only need to learn 1 system.
Will Gardner, Managing Director, COMBUS
To offer clients greater value, COMBUS needed a solution that would make it easier for firms to access and use their multi-peril model. The ability to run different versions of the model easily within one system was also key for their users. Finally, COMBUS needed a managed service in order to reduce their administrative burden and allow them to focus on model development. ModEx delivered that solution.
ModEx is the first independent multi-vendor catastrophe modelling platform operating on the Oasis LMF. With ModEx’s web-based model execution software, it is easier for clients to deploy and access COMBUS’s models within a single platform, reducing training requirements. As a fully managed and hosted service ModEx also lowers the IT costs for firms using COMBUS’s models.
- Improved user experience
ModEx enables (re)insurers to access COMBUS’s models securely through the ModEx web-app. The streamlined user interface is designed to be efficient and easy to navigate, allowing for model execution in just a few clicks. Users are also provided with a full audit trail of their previous runs and robust support processes.
- Onboarding made simple
With ModEx’s fully hosted service, clients can run COMBUS’s model without any in-house installation, freeing up time and IT resources. ModEx users also have the option of signing a single contract with ModEx instead of contracting with different model providers bilaterally, simplifying the onboarding process.
- Focus on model development
To provide their clients with the best possible understanding of their risk exposure, COMBUS continuously refines its current models and develops new ones. By outsourcing licensing, client relationship management and support to ModEx, COMBUS can focus on what they do best: delivering market leading actuarial consulting and catastrophe modelling services for Australia.
- Getting the most from models
By making their models available on ModEx, COMBUS are helping to break open the “black box” around modelling, offering users greater transparency around how these models are constructed. By allowing users to run different versions of the same model, COMBUS can educate its users about the impact of underlying assumptions on output data, helping the (re)insurance industry to better understand its risk.
ModEx provides the most efficient way for (re)insurers to access our models.
Will Gardner, Managing Director, COMBUS