Simplitium, a fully owned subsidiary of leading exchange and clearing technology supplier Cinnober, has signed an agreement with Lloyd’s of London and ten managing agents to provide access to catastrophe models via the Oasis Loss Modelling Framework under a shared service arrangement.
- ModEx – the latest shared service specifically designed for the insurance industry
- Partnering with member owned not-for-profit company Oasis LMF
- Ten managing agents supporting the first offering of hurricane and earthquake models
This innovative offering, ModEx, represents a paradigm shift for catastrophe risk loss modelling business within the global insurance industry, while bringing the reputation for excellence, reliability and quality from Cinnober’s traditional market within financial services.
“Leaders in the catastrophe modelling field are realizing the value of deploying high quality models and utilizing this new, extensible and scalable platform. We’re delighted with our cooperation with Simplitium and Cinnober, while bringing a new range of cost effective transparent models to market,” says Dickie Whitaker, CEO of Oasis. “This has too long been a pain for the industry. This new flexible, cost-effective hybrid cloud solution is great news, not least for Oasis’ 43 owners from the industry.”
Scheduled for launch in December 2016, ModEx initially hosts Applied Research Associates’ (ARA’s) “HurLoss” US hurricane model and CatRisk’s regional catastrophe Middle East Earthquake model with more models scheduled to follow.
There are ten managing agents supporting the shared service initiative sponsored by Lloyd’s and LMA, these are Ascot, Beazley, Barbican, Chubb, RenaissanceRe, Tokio Marine Kiln, SCOR (Channel), Starstone, Sompo Canopius and XL Catlin. Other managing agents may participate in future arrangements for catastrophe modelling on the ModEx platform on a shared services basis.
“Traditionally, the benefits of risk modelling for underwriters has been offset by the significant spend required to access advanced models,” says Jamie Khurshid, CEO of Simplitium. “In conjunction with Oasis, we’re now able to offer a solution for the full suite of perils to allow large and niche model providers to meet the individual needs of customers through a robust and secure shared services platform.”
The ModEx platform is accessible, scalable and designed to easily cater for additional models. This will be a one stop shop for risk models, providing the market with a clearer understanding of risk, especially in developing countries vulnerable to climate change.
“It’s in our DNA to be at the forefront of bringing innovative technology to solve industry challenges. Together with Oasis, we take pride in bringing this groundbreaking initiative for catastrophe risk loss modelling to market,” says Veronica Augustsson, CEO of Cinnober Financial Technology. “ModEx is an exciting expansion of our business development and together with Oasis, Lloyd’s and the LMA we’re providing true market innovation to the world of risk models and the insurance industry.”
Simplitium Ltd is a fully owned subsidiary of Swedish fintech provider Cinnober Financial Technology AB. Cinnober is a world-leading independent supplier of financial technology to marketplaces and clearinghouses. Customers include major exchanges with extreme demands on reliability and performance, such as the Australian Securities Exchange, BM&FBOVESPA, Dubai Gold & Commodities Exchange, Euronext, Japan Exchange Group, Johannesburg Stock Exchange, the London Metal Exchange, LME Clear, NYSE and the Stock Exchange of Thailand.
For further information or discussion, please contact:
Head of Corporate Communications
Cinnober Financial Technology Tel. +46-73 403 12 39 firstname.lastname@example.org
Oasis Tel. +44 (0)20 37 146 957
Oasis is a global not-for-profit company limited by guarantee and owned by its 43 members who come from within the insurance and reinsurance community. Its mission is to create and foster links throughout the wide community of those interested in modelling catastrophic risk across business, academia, and government. http://www.oasislmf.org/
Lloyd’s is the world’s specialist insurance and reinsurance market that offers a unique concentration of expertise and talent, backed by strong financial ratings and international licenses.
It is often the first to insure new, unusual or complex risks, providing innovative insurance solutions for local, cross border and global risks. Its strength lies in the diversity and expertise of the brokers and managing agents working at Lloyd’s, supported by capital from across the world.
In 2016, more than 90 syndicates are underwriting insurance and reinsurance at Lloyd’s, covering all lines of business from more than 200 countries and territories worldwide. Lloyd’s is regulated by the Prudential Regulatory Authority and Financial Conduct Authority. About Lloyd’s Markets Association (LMA) Formed in 2001 and located in the heart of the Lloyd’s Building in the City of London, the Lloyd’s Market Association represents the interests of the Lloyd’s underwriting community.
All underwriting businesses at Lloyd’s are members, together managing gross premium income of around £27 billion per annum. For more information visit: www.lmalloyds.com
Simplitium was established in 2007 in response to the regulatory pressures introduced when MiFID was implemented, offering MTFs, SIs and investment firms an easy and cost-efficient way to comply with the new transparency obligations.
Ever since,Simplitium has operated with exceptional uptime, and is the trade data monitor (TDM) with the most comprehensive offering of reportable instruments, including more than 10,000 stocks and ETFs across Europe, the Swiss and Russian markets.
Ever since Simplitium’s inception, its core technology has been supplied by Cinnober. In 2014 Cinnober acquired Simplitium ensuring the continued existence of a specialized provider, committed to the long term delivery of transparency services under MiFID II and MiFIR. For further information, please visit www.Simplitium.com
About Cinnober and commercial definitions
Cinnober provides solutions and services to leading trading and clearing venues, including exchanges, clearinghouses, banks and brokers. Cinnober’s solutions are largely based on the TRADExpress™ Platform, incorporating everything needed for mission-critical solutions in terms of performance, robustness and flexibility.
The portfolio of offerings includes price discovery and matching, real-time risk management, clearing and settlement, index calculation, data distribution and surveillance. Cinnober’s customers include the Australian Securities Exchange, BM&FBOVESPA, Dubai Gold & Commodities Exchange, Euronext, Japan Exchange Group, Johannesburg Stock Exchange, the London Metal Exchange, LME Clear, NYSE and the Stock Exchange of Thailand. For additional information, please visit www.cinnober.com
Cinnober’s shares are traded on the Nasdaq First North exchange and the company’s Certified Advisor is Avanza. To help the market to assess the value of the deals won by Cinnober, the following definitions have been established. A major deal is one for which the order value over a period of five years is estimated to exceed SEK 100 million.
A smaller deal is one for which the order value over a period of five years is estimated to be less than SEK 30 million. A medium-sized deal is one for which the order value over a period of five years is estimated to be in between that of a smaller deal and a major one. The initial signed agreements regarding Boat Oasis is considered a smaller deal from this perspective.