If the last year has taught us anything it’s that we are currently living in a climate of constant catastrophe. Businesses again have an urgency to be proactive in understanding and analyzing exposures to their portfolios. It has further underlined that guesses and gut feelings won’t cut it as a way to make decisions, and there’s a requirement to be seen as responsive to both threats and opportunities.
Today portfolio managers are kept busier than ever: trying to juggle managing portfolio profitability, growth, keeping within exposed limits set by management, ensuring underwriters don’t breach their thresholds as well as being responsible for keeping any losses to the portfolio to a tolerable level.
It’s not as easy as simply choosing another tool from the many tools out there, and realistically we know sub-par tools won’t cut it. What is needed is a solution that offers a comprehensive and consistent view of risk for all exposures across various relevant markets. It is imperative that you be able to truly trust the visual representation and use it as a basis for your decisions.
As an application available on RMS Risk Intelligence™ (RI), ExposureIQ™ offers an intuitive, user friendly, powerful portfolio management solution to make managing an entire book of business simple with speed and accuracy.
Industry-leading RMS Data
RMS has transformed the catastrophe risk industry, and continues to build on over 30 years of expertise. ExposureIQ leverages the same industry-leading expertise to help users access industry-leading data, manage exposures and build sophisticated deterministic scenarios. It provides users access to the same layers RMS uses to build the probabilistic models, based on the same science and research, including that used for latest high-definition (HD) models, as shown in Figure 1.
Figure 1. Using ExposureIQ to visualize portfolio exposure values against soil data in northern California.
Take the U.S. Inland Flood HD model for example. It has a long temporal simulation (50k years) that generates over 1 million flood events that provide a complete characterization of low-and high-severity events while accounting for clustering, antecedent conditions, and seasonality. Offering both a comprehensive and complete view of flood risk for the U.S., the hazard layers used to build this model – both for defended and undefended views, at different return-periods – are available to all users of ExposureIQ.
In fact, all users of the application will have access to the same RMS hazard datasets as those customers who license the models, leveraging the model IP for an informed and consistent approach to risk management.
Consistent View of Risk
Speaking of consistent, a key application metric is the exposed limit. The exposed limit, the output of an accumulation run in ExposureIQ, is critical for commercial and specialty business where the actual risk assumed is not the full value, but perhaps a layer that has special terms and conditions (e.g., sub-limits, special conditions, attachment points, co-insurance, limits/deductibles at different levels). To understand this exposure, you must run the financial model to view your exposed limit.
ExposureIQ generates the exposed limit by leveraging the RMS financial model, which is consistent in its approach with both the RiskLink calculation engine, as well as the other apps on RMS Risk Intelligence. This results in an increased level of confidence that policy terms and conditions are calculated in a consistent way regardless of what metric they are viewing.
A Flexible Analytics Tool
Once a user has built a comprehensive and detailed deterministic scenario and used the RMS financial model to generate the results, ExposureIQ offers users the ability to quickly drill down into loss driving policies and locations.
The intuitive and performant solution lets portfolio decision makers, regardless of technical expertise, to gain deeper insights into their portfolio within minutes allowing them to be responsive to both threats and opportunities within their books of business.
Delivering Event Response Insights
ExposureIQ offers integration with RMS HWind, the world’s leading provider of tropical cyclone wind field data. HWind includes observation-based data products for both real-time and historical wind field analyses in the western North Atlantic, Eastern Pacific, and Central Pacific basins. HWind real-time analysis consists of instantaneous wind field snapshots and post-landfall wind hazard footprints. This enables you to assess and respond to evolving storm conditions as the event unfolds. Snapshots allow you to understand storm characteristics and anticipate where claims and business interruption are likely to occur, while footprints help inform accurate positioning of response and recovery assets, as well as post-event performance and loss assessment.
Want to Know More? Ask Us About a Preview
For those that are interested in hand-on access to ExposureIQ through our preview program or want to learn more about how ExposureIQ can help you manage your portfolio contact sales@rms.com
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Shaheen Razzaq has more than a decade of experience delivering risk management solutions to both insurance and reinsurance companies, currently as a Senior Director within Product Management at RMS, responsible for introducing innovative new applications to the market.
Prior to joining RMS, Shaheen was Risk Aggregations Business Unit Manager at Room Solutions Ltd., and led a department that designs and develops, Exact Advantage, a popular, next-generation offshore energy risk aggregation tool. At Room Solutions Ltd, he then went on manage a global development team that built and successfully implemented several contract and exposure management solutions for large European commercial insurance organizations.
As a regular speaker at industry events, Shaheen often gives presentations about the business-value technology delivers to organizations that manage both catastrophe and non-catastrophe risk. Shaheen holds a master’s in business and information technology from Kingston Business School.
