Exceedance® 2021 has come to an end and – to all the attendees that joined us over the last three days – on behalf of RMS®, I would like to thank each of you for joining. It was great to see so many (re)insurance leaders actively participating and sharing their insights and excitement for the future of the industry.
The overall theme for Exceedance was “Outperform,” examining how modeling science, technology, and data can all come together to help your organization unravel complexity, turn it to your advantage, and outperform in the risk management industry. RMS experts were joined by 28 external speakers, sharing their perspective across the keynote panels and Industry Insights track sessions – on issues from C-suite business challenges and regulation through to how climate change risks could affect the mortgage industry.
The conference hit the ground running from the first keynote address featuring RMS Chief Executive Officer Karen White and the senior team responsible for models, products, and software. In this keynote, the speakers each demonstrated how the risk landscape is becoming more complex and interconnected, whether from systemic risk, cyber, climate change, catastrophe clash, business interruption, or regulatory pressures.
As a counterbalance, the speakers also showed how in parallel, new innovations are now possible through advanced model science, technology, open platforms and cloud – with analytics and data solutions moving at an accelerated pace to meet these industry forces. Our executive panel with leaders from Allianz, Guy Carpenter, Willis Towers Watson, and Zurich gave insightful commentary on the challenges around risk data and analytics – and how effective use of data will be a core driver for targeted product innovation that better meets the needs of end customers.
Four exciting new innovations were also announced during the opening keynote:
- New capabilities for ExposureIQ™ an application on the RMS unified risk platform, Risk Intelligence™ allows users to run accumulations and view exposures across insurance and (re)insurance portfolios in one place.
- RMS Global Flood Solution Suite offers 100 percent coverage of global property gross written premiums, with new inland flood models for China, New Zealand, and Southeast Asia (Thailand, Singapore, Malaysia, and Indonesia), and new global flood hazard maps for over 200 countries.
- Significant updates to the industry-leading RMS North Atlantic Hurricane Models with the release of Version 21 incorporating lessons learned from the 2017–20 hurricane seasons.
- New Climate Change Models extend our respected catastrophe model methodology to help clients better assess the near- and long-term impacts of climate change on physical assets and on their businesses.
Perspectives on Climate Change
Data from our new Climate Change Models is already helping put the risk of climate change in perspective. The models indicate that average annual losses (AAL) from North Atlantic hurricane wind could increase by up to 24 percent by 2050, and European flood risk AAL could increase by up to 59 percent by 2050. This set the stage for our second keynote with Robert Muir-Wood, chief research officer for RMS, and Matthew Kahn, environmental economist.
Entitled New Perspectives: The Impact and Business of Climate Change, the keynote explored how for businesses, governments, and countries the risks associated with climate change have become a key concern. Systemic or compounded risk is the new norm, from the effects of rising sea levels on storm surge to that of drought on wildfires.
Robert and Matthew discussed how climate change will impact businesses, the industry, and the markets served by the risk management industry, both in the near- and long-terms. Matthew shared his perspective from his upcoming book Adapting to Climate Change, in which he applies the tools of microeconomics to explore how individual economic choices in response to climate change will transform the larger economy.
The Future of Insurance
On the final day of the 2021 Exceedance conference, Michael Steel, global head of business development for RMS, looked to the future of insurance, joined by senior executives from Acacia Holdings, AON, SCOR, and Tokio Marine Kiln.
In his keynote, Michael examined the market forces that are driving change and how the industry is taking on its future in new ways. The executives on the panel all recognized that change is a constant in the industry, and disruption from new entrants, technology, or customer demand, can be a catalyst for change. Disruption is something to understand and embrace, rather than to be feared.
The panel also discussed how new opportunities can arise, such as how the introduction of regulation can prompt new ways of thinking and a chance to operate differently. There was also agreement among this panel of leaders that the effective use of data can be a great enabler as a route to generate new insights and to build more predictable, repeatable business.
This year’s conference was again a testament to how Exceedance offers the most comprehensive agenda for the risk management industry, as evidenced by the great attendance across over 50 sessions within seven tracks – offering engaging debate, deep dives into risk modeling, and best practices across underwriting, portfolio management, and insurance-linked securities (ILS). There was even time for a little fun too, including a real competitive spirit among our attendees at the “Great Give-Back Trivia Game,” supporting our partner charity Build Change.
It has been a very full three days, and Exceedance attendees can log in tomorrow (Friday) to access the sessions on demand for a further 60 days. The conversations from Exceedance will continue, and if you would like to see what has been discussed during the conference, simply search the hashtags #Outperform and #EXCD21, or follow us on Facebook, Twitter, or LinkedIn.
I would like to thank all attendees for joining us from your laptops and devices across the globe. An online survey will be sent out shortly, and your feedback is highly valued. I hope you have gained new insights in your business’s journey in what is a fast-changing risk and business landscape. If you’d like to talk to the RMS team, please email us at firstname.lastname@example.org.