Boston cat modeling pioneer Clark forms consulting firm

Catastrophe modeling pioneer and founder of the firm AIR, Karen Clark, has formed a new firm — Karen Clark & Co. — to help companies use catastrophe models in important risk management decisions. The Boston firm will offer consulting services, independent reviews of company internal processes, and executive briefings to provide senior management and their boards with specifics they need to know about using cat models to manage risk.

Clark developed the first hurricane catastrophe model and in 1987 founded the first catastrophe modeling company, Applied Insurance Research, which subsequently became AIR Worldwide Corp. after acquisition by Insurance Services Office in 2002.

“It’s become clear the industry needs an independent company with the expertise to inform CEOs and their boards on what they need to know about catastrophe risk and catastrophe models and to help them ensure the integrity of their internal risk assessment and management processes,” said Clark. “As rating agencies, regulators and other stakeholders take an increasingly active interest in how companies are assessing and managing risk, independent information and reviews of those processes are becoming much more important.”