As (re)insurers become more demanding on where they access cat risk models, Impact Forecasting wanted to give firms more choice. They also wanted to allow firms to trial their models in a simplified way and offer clients full insight into how their models run. ModEx provided Impact Forecasting with the opportunity to achieve these goals.
We saw the benefit of bringing our models to ModEx and helping people to see and run our models in the platform of their choice.
Adam Podlaha, CEO, Impact Forecasting
Insurers face a number of issues when looking to adopt catastrophe models, including regulatory, technical and cultural challenges. These are slowly being overcome as firms realise that there are viable alternative model vendors in the market providing them with a wider choice.
Impact Forecasting deploy their models though a range of channels, including their own platform, ELEMENTS. As clients become more demanding on where they access cat risk models, Impact Forecasting recognised that firms wanted more choice and were keen to support that. They also wanted to offer maximum flexibility to allow firms to trial their models in a simplified way, and offer clients full insight into how their models run. Additionally, Impact Forecasting were keen to improve the efficiency of model deployments.
Impact Forecasting saw the flexibility and accessibility of Simplitium’s ModEx platform as an opportunity to provide clients with choice and maximise their outreach. The ability to offer clients model evaluations through ModEx was also an attractive proposition since there was relatively little effort needed from either Impact Forecasting or their clients. This has historically proven complicated due to the time and resource required to set up model evaluations.
One of Impact Forecasting’s key mottos is transparency, which is central to breaking down the barriers that may inhibit firms from looking at alternative models. By leveraging the open-source Oasis framework for model development and allowing easier access to their models through ModEx, customers can look inside Impact Forecasting’s models to better understand their outputs and therefore their risk. Impact Forecasting have been working with Oasis since its inception. For Impact Forecasting, ModEx brought Oasis into a production-ready environment. Bringing their models to the ModEx platform was therefore a natural choice to allow clients to run their models on the platform of their choice.
Improved model deployments
The ModEx hosted services approach has removed the requirement for Impact Forecasting to deploy local installations. With the industry having increasingly moved towards outsourced hardware and IT support (which often creates high additional costs for hosting cat models), companies using Impact Forecasting’s models through ModEx can make efficiency gains by saving on installation time and costs.
Insurers now have an alternative way to model risk which is easy to access and therefore cost-effective. ModEx offers (re)insurers access to a greater choice of models, including those provided by Impact Forecasting. By bringing their models to ModEx, Impact Forecasting enable clients to run their models on the platform of their choice.
Impact Forecasting were attracted to the flexibility and openness of the Simplitium team. Simplitium work on several levels ranging from the technical (e.g. discussing modifiers in Impact Forecasting’s models to looking at how a particular peril is modelled) to working together to help our joint clients make the best use of Impact Forecasting models.
We liked the way the Simplitium team have brought Oasis into a production ready environment.
Chris Ewing, Business Development Manager, Impact Forecasting
IMPACT FORECASTING MODELS AVAILABLE ON MODEX
Impact Forecasting currently have their European Windstorm and Arabian Peninsula, Iran and South Africa Earthquake models available on ModEx. In the near future, they are rolling out more models into Oasis and ModEx including US and Canada flood, US earthquake, Europe SCS/Hail and a number of other earthquake, flood and atmospheric perils models. Long-term, Impact Forecasting may consider other models which will be driven by customer demand, ensuring they help customers be where they want to be in the multi-modelling landscape.
WHAT IS NEXT?
Impact Forecasting are excited to be working with Simplitium on tools which support the OEDTM (Open Exposure Database), to help firms convert data from other vendor models into a ModEx/Oasis-ready format. Together, we’re hoping this will bring change to the market, enabling insurers to truly adopt a multi-model approach.