RMS TO LAUNCH MARINE CAT MODEL IN MAY

Risk Management Solutions (RMS) is working with insurers to build a marine catastrophe model, which they say is the first ever such model. Chubb, Aon Benfield, AXIS, Liberty, Amlin, Munich Re and Sompo Canopius are working with RMS to compile data and build the model, which will be available in May. The model will be used to understand global port and cargo exposure accumulations, with lessons learnt from the 2011 Tohoku earthquake, 2012 Hurricane Sandy and the 2015 Tianjin explosions helping to inform the model. Marek Shafer, head of catastrophe management at Sompo Canopius, commented: “The practice of square pegging marine exposure into the round holes of property catastrophe risk models is now recognised as inappropriate. A new approach is needed to align these correlated classes and our collaboration with RMS represents a key step on this journey.”