KatRisk reveals advanced SCS model to revolutionise risk management for insurers

Catastrophe risk software provider KatRisk has unveiled a Severe Convective Storm (SCS) Model designed to transform how the insurance industry manages volatile weather risks, such as hail, tornadoes, and straight-line wind.

According to the firm, the need for advanced risk management tools has never been more critical, given that severe convective storms caused approximately $70 billion in insured losses globally in 2023.

KatRisk noted that its SCS model rises to this challenge by offering “unparalleled precision and efficiency developed to meet the diverse needs of insurers, government agencies, and financial institutions.”

The firm continued, “This powerful tool unlocks improved risk selection, fine-tuned pricing strategies, and greater visibility into severe risk exposure for KatRisk’s clients, enabling data-driven strategies for profitable growth.”

KatRisk’s SCS model is said to offer a wide range of features aimed at helping clients stay ahead of severe weather risks.

These include transparency, customisation, high-resolution data, fast and efficient processing, integration of climate variability, and global correlation capabilities.

Jeffrey Chen, the CEO of KatRisk, commented on the news, “As we continue to see an increased impact of severe convective storms, it becomes essential for the industry to leverage advanced modelling techniques that can keep pace with these changes.

“Our SCS model is a testament to KatRisk’s commitment to innovation and excellence in catastrophe risk modelling and client service.”

Founded in 2012, KatRisk now has a global presence spanning over 190 countries. Perils modelled by the firm include inland flooding, tropical cyclone wind, storm surge, severe convective storm, and wildfire.

KatRisk is also the third-party risk modeller for all of the FloodSmart Re catastrophe bonds sponsored by the NFIP.