KatRisk adds treaty reinsurance capabilities to catastrophe risk model

KatRisk, a catastrophe risk modelling company with a focus on flood and wind related risks and the third-party risk modelling agency for the NFIP flood catastrophe bonds, has updated its SpatialKat product suite to add treaty reinsurance capabilities.

KatRisk has been steadily updating its catastrophe risk modelling suite of underwriting related tools and portfolio analytics, with the focus being on inland flood, storm surge and tropical cyclone risks.

Now, in an update sure to appeal to the reinsurance and insurance-linked securities (ILS) market, KatRisk has added the ability to model treaty reinsurance arrangements in its catastrophe risk modeling suite SpatialKat 3.0 and also to its standalone financial model FMKat.

KatRisk had previously released Facultative risk modeling capabilities and in a similar manner reinsurance Treaties can be applied at the Site, Policy, or Account Level within its suite of tools.

“This is a major update to accurately and transparently model complex insurance structures for our customers,” explained Guy Morrow, Co-Founder of KatRisk. “We would like to thank our industry partners for validating our data flow charts and exposure formats. The rapid feedback was invaluable during the development process.”

“Our modeling approaches and technology stack choices take full advantage of open source and current computer architectures. Data and workflow Interoperability will become more important for our customers in the coming years. We are ready for those challenges,” explained Swami Krishnamoorthy, CTO of KatRisk.

KatRisk has been getting good uptake of its catastrophe risk models across the insurance and reinsurance marketplace, with the flood model a particular hit and selected for modelling FEMA’s two flood catastrophe bonds for the U.S. National Flood Insurance Program (NFIP).

Expanding the modelling suite to include treaty reinsurance capabilities will further help KatRisk to acquire new customers and likely broaden its models appeal with ILS funds and third-party investors.

“With these new financial modeling capabilities the upcoming global wind and flood model release will make an immediate impact to price and transfer risk.” added Brandon Katz, Vice President of KatRisk. “We are thrilled to provide our customers with the data and tools they need to run their business.”

Multi-model views of risk are increasingly important to the reinsurance and ILS market and with so much uncertainty in recent losses, as well as divergence between modelled views depending on vendor, the catastrophe risk modelling market seems ripe for new players to offer additional views of risk.