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Moody’s RMS integrates Nasdaq’s risk modelling platform for Oasis models


Catastrophe risk modeller Moody’s RMS is integrating Nasdaq’s Risk Modelling for Catastrophes (NRMC) service into its Intelligent Risk Platform, providing consolidated access to more than 300 risk models.

The 300 plus risk models offered through Nasdaq’s platform is in addition to the more than 400 existing risk models already provided by Moody’s RMS.

The risk modeller states that a preview of the integrated service featured Fathom’s US flood model running in parallel with Moody’s RMS US Flood Model, demonstrating how customers can build a unified view of risk by combining models across different vendors within a single modelling application.

Necessary agreements need to be put in place between RMS and its partners for the integration, as well as for customer licenses, but once fully developed, customers will be able to use Moody’s RMS Intelligent Risk Platform applications, including aRisk Modeler™, UnderwriteIQ™, and TreatyIQ™, run their own models, and also have access to third-party models running on the Nasdaq platform, which is based on the Oasis Loss Modeling Framework (LMF).

Specifically, two new modelling engines will initially be integrated into the Intelligent Risk Platform to achieve unified model execution.

This includes a new Moody’s RMS open modelling engine designed to integrate with external modelling platforms, which will allow direct connection to the Intelligent Risk Platform for seamless execution of third-party risk models available in the Nasdaq environment alongside Moody’s RMS risk models.

The other engine is a new, fully integrated Moody’s RMS native modelling engine designed to allow integrated custom models, including Moody’s RMS customers’ home-grown models, to be executed within the Intelligent Risk Platform.

James Lay, Senior Director at Nasdaq, commented, “The market is increasingly utilizing catastrophe models from multiple vendors to inform risk selection, risk pricing, and portfolio management decision-making. We believe that greater integration between the Nasdaq Risk Modelling for Catastrophes platform and the Intelligent Risk Platform will deliver enhanced benefits and efficiencies for our clients, and the reinsurance marketplace, while maintaining the independence of Nasdaq in the market. With this integration, Nasdaq customers will benefit from simpler access to modeling using the Moody’s RMS Intelligent Risk Platform data schema and data conversion functions that accept both Open Exposure Data (OED) and Exposure Data Module (EDM) formats and then simplify risk transfer using Results Data Module (RDM).”

“Oasis was established to increase choice in catastrophe modeling; it also has a key role to curate and promote standards. It is clear that this move will help both of those goals. The Nasdaq agreement helps create a trusted environment and independence for all model providers, as well as protecting individual model intellectual property. Equally, because Moody’s RMS is using standards encompassed by Oasis open-source software, this will help support the functions that Oasis exists to perform,” added Dickie Whitaker, Chief Executive, Oasis Loss Modelling Framework.

Cihan Biyikoglu, Executive Vice President, Product, Moody’s RMS, said, “We are very excited about Nasdaq’s commitment to work exclusively with RMS to develop unified risk modelling in addition to facilitating integration of customers’ own models. The science and technology to make every risk known is continually evolving. At the genesis of the Intelligent Risk Platform, our intent was to unify risk analytics. Unified risk modeling with the new architecture is a critical step forward in that direction. The upcoming unified modeling capabilities within the Intelligent Risk Platform will not only simplify the great infrastructural complexity of data format conversion and enable many more customers to have access to multiple views of risk, but I believe will also accelerate industry innovation in the risk analytics space.

“Our customers expect Moody’s RMS to provide best in-class modeling incorporating the latest science and technology. By opening the Intelligent Risk Platform to include third-party models, companies will be able to blend and group Moody’s RMS, Oasis, or their own risk models to better enable unified views of risk, improve modeling efficiency, and gain a unified modeling approach across all insights, systems, and solutions.”

Dr Andrew Smith, Co-Founder and Chief Operations Officer, Fathom, added, “We welcome the ecosystem innovation that Moody’s RMS, working with Nasdaq, is bringing to the risk market. We believe it will be incredibly attractive for customers to access multiple views of risk through the same interface, and are proud to see the role Fathom’s data has played in validating the feasibility of the new platform. By standardizing and simplifying multi-vendor exposure and results data, it will offer greater flexibility and efficiency for risk professionals. As we look to the future, we are excited to explore how more of our hazard risk data can be shared through the platform – watch this space.”

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