Catastrophe modeling firm EQECAT announced that it has finalized an agreement to share exposure data schemas with another major catastrophe-modeling firm, Risk Management Solutions (RMS).

The agreement recognizes the need in the industry for a data standard, according to the EQECAT, as underwriting becomes more complex and nuanced and some companies use multiple models, each with its own schema.

“What has developed in this industry that we are in is that each of the model vendors has developed their own proprietary data standards,” EQECAT’s Senior Vice President Tom Larsen said.

“Transparent data standards for catastrophe modeling benefit Eqecat’s clients and the insurance risk transfer marketplace,” said Paul Little, president of EQECAT.

Little said the agreement will improve the translation of data model inputs. “Workflow inefficiencies of moving and translating exposure between models are a time-consuming exercise, and this collaboration is going to save many man hours,” he said.

EQECAT said this multi-year agreement between the two firms for the sharing exposure database schemas benefits their mutual marketplace and clients.

The agreement “does not include nor does it impose any restrictions on the operationalization of results data to or from either EQECAT or RMS platforms,” EQECAT said.

(Reporter Young Ha is the East Coast editor of Insurance Journal.)