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ModEx cat model interoperability and reinsurance Q&A

News - 20.02.2019

On February 13, we hosted a Cat Model Interoperability and Reinsurance webinar, looking at Open Exposure Data (OED) and the implementation of reinsurance in ModEx. Crucially, we looked at how we can improve interoperability across the industry. We received a lot of questions during and after the webinar, a selection of which are answered below.

ModEx webinar 2

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1How is financial information applied in ModEx?

Financial information is primarily applied via CSV files. You can also input other information such as the runtime parameters, the choice of model and the number of samples, directly in the user interface.

 


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2. Is anyone in the industry already using OED?   

Yes, OED has been incorporated by several model developers and Simplitium  clients. OED was designed by Simplitium together with the insurance industry, with significant participation from Canopius and Ascot. Read more here.

 


 

3. Are there any plans to provide a conversion tool to and from different vendor formats?

Aon's Impact WorkBench have plans to include this in their product to support OED and 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 adopt a truly multi-model approach.

The Interoperability Working Group, under the Insurance Development Forum’s Risk Modelling Steering Group, is also looking to put a solution in place for exposure interoperability, including OED.

 


 

4. How do the defined exposure properties in OED relate to the vulnerability ID of a model? 

This is one of the strengths of the Oasis Framework. Every modeller will have a keys server in place which serves up the vulnerability keys (and area peril keys). This means that different model developers can use the same input format (OED) but serve up different vulnerability curves. A keys server takes in the exposure information (primary and secondary modifiers, and sometimes area), converts it into an abstract Oasis key and returns it into the process so that it can be run through the Oasis framework.

 


 

5. Is it possible to see individual reinsurance treaty loss perspectives? (e.g. Location level recoveries from a surplus share or per risk treaty)

This is not possible at the moment. Currently, firms can see net loss (ground-up, gross and net) at location, policy, state, county, line of business, and portfolio level, but cannot see reinsurance treaty or reinsurance contract loss. We know this is important to users and it is therefore high up on the Oasis/ModEx development agenda.

 


 

6. Are there any geocoding solutions available within Oasis / ModEx? If so, would the geocoding tool read from EDM or does it have to be in OED format? 

We have found that exposures are very often already geocoded from other tools or platforms when they reach the ModEx platform, which is why there is no geocoding available in ModEx at the moment. It would be relatively easy to implement should a customer request it. 

OED caters for latitude and longitude, as well as the address match level and confidence in those fields. This information can all be used within the keys server components of the model vendor. 

 


 

7. How is data loaded to the OED database?

Procedures on how to upload and download data to/from the database are available to ModEx clients.

 


 

8. Is OED compatible with other open exposure data formats? For example, those used by the Global Earthquake Model (GEM) or GFDRR's multi-hazard exposure data?

Not yet, since a conversion tool is required (see question 3). GEM is a key member of the Risk Modelling Steering Group and part of the Interoperability Working Group, so we envisage conversion tools emerging through this work-stream.

 


 

9. Are GEM models available via ModEx?           

Not yet. However, any model built in Oasis format can be added to ModEx. We know GEM are in conversations with Oasis and we are hoping that GEM models will be added to the Oasis portfolio in the near future. As per usual, model conversions are driven by demand so if there were a number of firms requesting this model via ModEx, this could speed up the process.

 


 

10. How much does ModEx usage cost?

Please contact James Lay on james.lay@simplitium.com for inquiries about our commercials. 

 


 

 11. Will there be any OED/SQL integration in ModEx? If so, when will this go live? 

Yes, we estimate that this will go live by the end of 2019.

 


 

12. Will you use the native Oasis API or will you build something on top?  

Our API will be based on the Oasis API with additional functionality
as required by ModEx users.    

 


 

13. Is OED already fully supported via API? Can we launch an Oasis API using OED as a payload?

Yes, the Oasis API is in Beta release and supports OED. However, not all OED functionality is available in Oasis yet. The Oasis API release is imminent and once it is live we will look at that to see how to best incorporate it into ModEx. This is on our roadmap for 2019. For users, a ModEx API would mean programmatic access to ModEx directly within any in-house system (without having to use the ModEx front-end). The Oasis API supports OED as its native format.