Karen Clark & Company Updates RiskInsight Modeling Platform

Software product and consulting service provider Karen Clark & Company (KCC) has released RI4, an update to the RiskInsight open loss modeling platform. The update includes enhanced global mapping capabilities, more detailed and interactive underwriter and CEO dashboards, and advanced model-building tools, according to the company.

In RI4, insurers and reinsurers can build hurricane and earthquake models worldwide by adding custom event catalogs and damage functions appropriate for specific peril regions. RiskInsight’s model-building tools, HazardMapper and DamageRatesManager, have been enhanced in RI4 to make it easier for model builders to create high resolution probabilistic catastrophe models.

RI4 includes global soil maps and terrain datasets covering all countries and territories. Modeling experts can select the scientific intensity formulas most appropriate for the specific peril region from a dropdown box. For example, RI4 includes dozens of earthquake attenuation functions incorporating the collective scientific expertise on ground motion for all types of seismic sources.

The RI4 financial module has global application and is operational for all peril regions. To create a new model, an event catalog and set of damage functions are all that’s required. Advanced modeling experts can build and customize new models within weeks, the company said.

RI4 gives insurers the ability to refine the model damage functions utilizing their own claims data and other information. Insurers can directly access and refine the Reference Model damage functions to produce closer alignment between modeled and actual loss experience.

“The catastrophe model damage functions are expressed as the ratio of the financial loss to a property divided by the replacement value of that property,” said Glen Daraskevich, KCC senior vice president. “But each insurer has different insurance-to-value assumptions, policy conditions, and claims handling practices. This means that the damage to a specific property will result in a different claim and loss amount depending on which insurer underwrites the property.”

The RiskInsight exposure analytics were also enhanced with the RI4 update, KCC said. Underwriters can generate custom dashboards reports, including interactive maps of exposures and market shares, data quality scores, and dozens of histograms illustrating construction, occupancy, year built, and other metrics. The RiskInsight 100 year Characteristic Event (CE) profiles are automatically displayed on the dashboard reports.

According to Karen Clark, KCC co-founder and CEO, RI4 is designed for modeling experts who want full transparency on model assumptions and the flexibility to build custom models.

Karen Clark & Company professionals are independent experts in catastrophe risk, catastrophe models, and catastrophe risk management.