Lloyd’s will make Menlo Park based Risk Management Solutions’ (RMS’) RiskOnline.com service available to members to track the progress of hurricanes in real time for the rest of the year 2000. Access will be free of charge during July, and offered at a substantial discount until October 31, when the hurricane season is usually at an end.
“This service, launched by RMS to coincide with the start of the hurricane season on June 1, allows the participants in the U.S. insurance market to track live probabilistic estimates of hurricane risk as storms approach land,” said the announcement
The service, which is updated ” every few hours,” also automatically tracks the probability distribution of loss estimates, “allowing claims mangers and risk transfer participants secure and around-the-clock access to the data they need to monitor and trade risk in real-time.”
The new product, which was launched in London on May 26th already has “over 200 insurers and reinsurers throughout the world” interested in subscribing to it, said RMS.
The most innovative feature RiskOnline offers is the integration of current weather data with estimates of losses and potential claims. This allows “market participants to not only respond more proactively to potential losses, but to underwrite reinsurance and hedge their own risk in real time,” said RMS International V.P. Matthew Grant.
The Managing Director of Lloyd’s Market Risk Unit, Dr. Roger Sellek, saw the use of analytical tools as a step forward in risk management, which Lloyd’s “fully supports.” “Lloyd’s welcomes RMS’ RiskOnline (TM) product, which will further assist syndicates in assessing and managing their property-catastrophe exposure throughout the 2000 hurricane season, ” said Sellek.
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