AIR, RenRe partner on extreme liability model
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Catastrophe modeling firm AIR Worldwide, a unit of Verisk Analytics Inc., and RenaissanceRe Holdings Ltd. are collaborating to develop a probabilistic model for extreme liability events.
The companies will work closely to further refine the industry’s first fully probabilistic model for extreme liability events, Boston-based AIR said in a statement Monday.
AIR is producing portfolio-specific casualty losses based on its exposure management application Arium, a scenario-based loss assessment framework allowing companies to measure portfolio loss potential and exposures to simulated scenarios, the statement said.
“We’re pleased to work with AIR to advance our industry’s ability to better understand how to model and manage casualty and specialty risk,” Ian Branagan, Pembroke, Bermuda-based RenaissanceRe’s senior vice president and group chief risk officer, said in the statement.
“This model provides a forward-looking view of risk and will enable insurers and reinsurers to capture the full distribution of the frequency and severity of casualty catastrophes,” Jay Guin, chief research officer at AIR Worldwide, said in the statement.
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