Xceedance, a global provider of insurance consulting, managed services, technology, data sciences and blockchain solutions, announced on Sunday that it is teaming up with the Oasis Loss Modelling Framework (Oasis LMF) to offer On-Demand Catastrophe Modeling Services to insurers, reinsurers and brokers.
The offering delivers modeling services on demand with no annual licensing requirements from each modeler, no requirement to use proprietary platforms, and with the flexibility to choose peril models from across a community of expert model providers on the Oasis platform.
Oasis LMF is a not-for-profit company founded in 2012 to open up the world of catastrophe modeling. It is collectively owned by close to 40 of the world’s leading insurers, reinsurers, brokers and financial institutions. Together, with an Associate Membership of almost 100 companies and academics, it forms a widespread community of organizations dedicated to improving exposure management and catastrophe risk modeling and strengthening links between relevant work in the scientific community and business users.
Model providers currently on the Oasis platform include Ambiental, Applied Research Associates, CatRisk, COMBUS, CoreLogic, ERN/RED, Fathom, Impact Forecasting and JBA Risk Management.
By combining robust global peril models and the open-source flexibility of Oasis LMF, the offering can prepare exposures for analysis from insurers’ and reinsurers’ raw data, and the data can be run for specific perils, countries and regions.
Xceedance will organize data in an industry-standard format, geocode it and validate its accuracy. Xceedance can also add policy terms and conditions, limits, sublimits and deductibles in consultation with insurance organizations.
On-Demand Catastrophe Modelling Services will document all assumptions of the model runs. The service will provide analysis reports, including loss metrics, while safeguarding users’ data.
“Reinsurers and brokers don’t need to spend time or resources on modeling. They don’t need to invest in infrastructure. And they can concentrate on writing business and serving their policyholders.”
Justin Davies, Xceedance
In a media statement, Justin Davies, EMEA region head at Xceedance, noted that reinsurers, insurers and brokers that used the On-Demand Catastrophe Modelling Services get comprehensive cat and exposure analytics delivered to them by an experienced team of Xceedance analysts without having to spend time or resources on modeling. “They don’t need to invest in infrastructure. And they can concentrate on writing business and serving their policyholders.”
In addition to savings on licensing and staffing, users of the On-Demand Catastrophe Modelling Services no long have to deploy multiple cat modeling platforms.
Dickie Whitaker, chief executive of Oasis LMF, noting the depth and knowledge for Xceedance, said that consulting firms “add a cost-effective and practical solution to accessing the expanding number of models available on the Oasis LMF platform.”
Addressing questions about fee arrangements specifically via email, Davies said that Oasis still charges reinsurers and insurers who wish to deploy the Oasis framework but that Xceedance does not pay a fee to Oasis since it is not an insurer or reinsurer. (Editor’s Note: Early information about Oasis back in 2014 described a membership fee for reinsurers and insurers and free access for IT companies and academics.)
“Clients will send us raw data. We’ll standardize and then model it and return the results back to them,” he said, noting that the clients pay a fee based on the TIV [total insurable value] of the account or portfolio,” Davies wrote. “This will vary on the country/peril model they ask us to use,” he added.
Oasis software, code and full documentation is available via GitHub (https://github.com/OasisLmf).