Five Intelligent Risk Platform Capabilities Brokers Can Take Advantage of NOW For The Upcoming Renewal Season

The January 1 renewal season marks one of the most intense, high-stress periods of the business year requiring concerted efforts from all market participants to complete the risk transfer process within a tight timeframe.

Yet, for brokers, these intense renewal periods are ripe with opportunities to help their clients and the market increase productivity through faster modeling speeds, more efficient data sharing, or help delve into more granular or differentiated risk insights.

In addition to enhancing the reinsurance placement process, providing differentiated services before the placement phase allows brokers to add significant value and improve customer engagement.

With the renewal period in full swing, many of our clients are taking full advantage of the highly scalable APIs and cloud-first architecture offered by Moody’s Intelligent Risk Platform™ (IRP), but if you are not using the IRP, we think it is not too late to use the platform to improve your workflows.

Let’s look at five important Moody’s Intelligent Risk Platform (IRP) capabilities that reinsurance brokers can take advantage of NOW without rearchitecting existing workflows.

1. Expanding Access to Advanced Modeling Insights Regardless of Exposure Data Schema

Many broker clients receive client exposure in a non-EDM (Exposure Data Module) schema, such as Catastrophe Exposure Database Exchange (CEDE) or Open Exposure Data (OED).

Some brokers have built their own data mapping tools and processes to run Moody’s RMS models on OED or CEDE.

However, transforming OED or CEDE data to an EDM is often a difficult, cumbersome, and continuing process that can monopolize valuable data engineering resources that could be assigned to higher-value tasks.

For example, brokers need to continually maintain and update their mapping tools with changes to the schema of multiple vendors.

Toward the end of 2023, Moody’s released its data mapping engine on the Intelligent Risk Platform.

Brokers can now import and transform the OED schema, and Verisk/AIR’s CEDE schema into EDM, negating the need for brokers to invest in developing, testing, and maintaining these complex schema mapping tools and deal with multiple versions of EDM, CEDE, and OED.

Moody's includes data mapping tools as part of a client's IRP license to significantly streamline brokers' efforts to transform CEDE and OED data into EDM.

This efficiency boost simplifies the delivery of advanced Moody’s RMS catastrophe modeling insights, aiding their clients in seeking placements.

2. Facilitate Data Sharing Between Risk Stakeholders with Risk Data Exchange

The insurance industry is no stranger to the challenges of managing and sharing large data sets. The sheer size of insurance portfolios – which can run to millions of locations, places enormous strain on insurance workflows and supporting IT systems.

This forces users to implement manual workarounds, such as breaking up the portfolio data sets into smaller files or only exchanging high-level data, which could impact overall risk data quality.

In 2023, Moody’s introduced Risk Data Exchange, a new capability available at no additional cost for firms licensing applications on the IRP such as Risk Modeler™, ExposureIQ™, UnderwriteIQ™, or TreatyIQ™ to help to make the exchange of data across the insurance value chain, secure, seamless and simple.

Where insurance, reinsurance, and ILS clients and partners are on the platform, brokers can dramatically improve the experience of sharing exposure and results.

Market participants can use Risk Data Exchange to share a portfolio of millions of locations without the data leaving the platform. Simply select the portfolio to share, enter the email address, and click send.

Platform administrators for the broker and its risk partners then approve the transfer to natively share the data.

3. Unlock Cat Modeling Productivity by Leveraging Generative AI Within Your Existing Tools and Workflows

Within streamlined six-week release cycles, Moody's consistently delivers pioneering innovations to Intelligent Risk Platform (IRP) clients.

However, such a rapid introduction of new capabilities can sometimes pose challenges in assimilating and mastering innovations within catastrophe modeling workflows, particularly during renewal periods when time is of the essence.

Delving into administrative and user guidelines to learn about the latest features or to brush up on key capabilities such as grouping or post-event treaty editing, can divert crucial time from risk analysis tasks.

Recognizing the need for clients to drive more productivity across their organizations, Moody's unveiled its IRP Navigator in August 2024, leveraging Moody's overall company commitment to incorporate Generative AI, to enable our clients to be at the forefront of risk analytics in the market.

The IRP Navigator is a 24/7 support chatbot seamlessly integrated into Moody's IRP applications ready to address product inquiries and provide workflow assistance whenever needed.

It is armed with knowledge of the software and model content available on Moody's Support Center and online help content from the platform.

With deep expertise across all our applications and insurance terminology, Moody’s IRP Navigator offers frictionless product and workflow support to serve broker client needs. Pose a question to the chatbot and it supplies detailed instructions and references from the source material.

Using Navigator translates to fewer hours spent reviewing documentation, increased independence in troubleshooting workflows, and reduced response times from Moody's Client Success teams as they focus on more immediate, high-impact client support.

4. Providing Multiple Risk Perspectives to Clients

Brokers often build and maintain multiple modeling environments for a specific peril to ensure better service to their clients and the market.

For instance, for a North Atlantic hurricane model where model vendors often release a model every two years, the IT servicing and maintenance costs to provide the market with multiple risk perspectives can escalate.

Then there is the cost of productivity to the catastrophe modeling organization, as having to migrate large datasets to multiple environments or to blend two models from the same or different vendors, can dramatically impact their ability to service their clients during renewal periods.

Brokers can take advantage of access to multiple versions of Moody’s RMS, in-house, or even third-party models on the same exposure dataset within Risk Modeler.

By utilizing a single source of truth for their catastrophe modeling analytics, brokers can dramatically improve quality and reduce errors in their downstream workflows.

This means fewer workflows for IT to maintain while being able to deliver rich risk insights from a fast and powerful modeling solution to achieve better placements for their clients.

5. Accelerating Modeling Speed and Capacity

Renewal periods are often characterized by high-stress, all-hands-on-deck periods for brokers. Often with just a few months or even weeks to complete the risk transfer process, computing resources to complete modeling jobs are at a premium.

Model runs that take days or weeks can strain broker/client relationships, and monopolize computing resources needed for other clients.

Moody’s Intelligent Risk Platform has introduced significant improvements in speed and capacity compared with the on-premises version of RiskLink. This includes;

• Faster model run times; clients can experience up to 13 times faster model execution for North Atlantic hurricane on a portfolio of one million locations.
• Flexible use of concurrent modeling capacity across business units using Interactive Lanes to distribute resources as needed.
• Scale cloud resources as required to meet peak workloads by using flexible environment sizing and Expansion Packs.

The Intelligent Risk Platform’s modular design simplifies the integration of new functions without the necessity for acquiring, setting up, or configuring additional infrastructure.

Offering flexibility, firms can choose a platform licensing model tailored to their initial modeling requirements. However, as firms grow and evolve, often unexpectedly, there might be a need to scale up modeling capabilities to meet increased demand.

To address this, Moody’s introduced flexible sizing approaches and Expansion Packs for the IRP, designed to accommodate surges in modeling needs, whether periodic or unexpected, by utilizing the scalable nature of cloud technology.

Moody’s also recognizes that brokers have complex and diverse businesses, where different segments may have different modeling needs.

Using an Interactive Lanes solution allows brokers to distribute concurrent modeling resources across the firm – allowing large portfolio analyses and smaller account modeling jobs to run simultaneously without blocking each other.

Capitalizing on the IRP Capabilities

The Intelligent Risk Platform offers a range of transformative capabilities to help brokers navigate the challenging reinsurance renewal periods more effectively.

By expanding access to advanced modeling insights, facilitating data sharing, integrating AI into applications, providing multiple risk perspectives, and accelerating modeling speed and capacity, the platform empowers brokers to enhance productivity, provide differentiated services, and ultimately drive efficiencies in the insurance value chain.

These five capabilities are just the start of how Moody’s is helping the entire insurance industry drive greater efficiencies during renewal periods.

As the industry evolves, our innovative solutions and technological advancements will be pivotal in enabling brokers to meet client needs, manage risks, and stay competitive in the marketplace.

The Intelligent Risk Platform is not just a tool for streamlining operations; it's a strategic asset for brokers aiming to leverage data and technology to their advantage during reinsurance renewals and beyond.

To learn more about the Intelligent Risk Platform, contact your Client Director or Customer Success Manager.