RMS, the Newark, Calif.-based risk modeling and analytics firm, has introduced a solution that enables underwriters to access critical information about any location globally, providing “a competitive advantage in risk assessment.”
The new application programming interface (API) links insurers’ underwriting systems with the hazard, exposure and loss data derived from RMS modeling, said RMS in a statement.
“In today’s soft market, underwriting discipline is vital. Insurers can’t afford to make improper pricing assumptions or inappropriate declinations,” said Chris Folkman, senior director, RMS model product management. “The best risk selection relies on the most accurate risk intelligence – and that’s what this new tool enables in fractions of a second.”
The RMS Location Intelligence API, helps underwriters understand risk at a particular site and to select and price accordingly, whether this be seismic risk, slope, soil, flood zone or building attributes, explained the modeling firm. This allows insurers to avoid or cede risks that don’t meet their risk appetite, expand into new territories with confidence, and thus optimize their book of business.
RMS said it eventually will offer this service across its full range of more than 190 models, reflecting the principal perils in key markets. Currently data is available for:
- U.S. hurricane: loss costs and risk scoring
- U.S. earthquake: loss costs and risk scoring
- European flood (13 countries): hazard data
In late 2017, this will be extended to include:
- High resolution U.S. flood hazard data
- Enhanced FEMA flood zone data
- Distance-to-coast, fault, and sinkhole metrics
RMS said clients benefit from a single view of risk across their business, which ensures “consistency from underwriting through portfolio management, where decisions are made about capital reserves and reinsurance purchase.”
Technical overhead and cost are minimized, RMS noted, “because this cloud-based solution can seamlessly integrate into existing workflows.” RMS noted that it interfaces with underwriting applications, agency portals, or even simple spreadsheets, which means no additional infrastructure is required.
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