multiple model

Broker Guy Carpenter has published a report looking at effective uses of catastrophe models by property insurers, uncertainty in risk modelling and advocating a multi-model approach to catastrophe models. The report suggests that a multi-model approach is better for estimating risk and controlling uncertainty, particularly given the ever-present factor of uncertainty in risk modelling.

Ratings agency Standard & Poor’s has issued a statement on the topic of using risk models from multiple vendors to assist in the rating of catastrophe bonds. Back in April, S&P put 15 catastrophe bond ratings on CreditWatch negative due to the introduction of a new version of the RMS U.S. hurricane risk model. The […]