Munich Re and Risk Management Solutions have teamed up to embark on research into new and emerging areas of risk modelling and aim to expand the frontiers of risk insurability.Co-operation among the risk management and risk transfer community members is the best way to advance the science of risk modelling and create more predictable and repeatable models which allow for the scope of insurable risks to be widened. Sharing of resources, computing power and knowledge will benefit both these companies, Munich Re will gain access to cutting edge models and technology while RMS will gain access to the massive resources of Munich Re and their huge portfolio of risk. The outcome, we hope, will be new capital market risk transfer solutions with models or indexes to support them!
Press release below:
“In view of the increasing complexity of risks, it is indispensable, particularly for insurance companies, to have sophisticated risk management tools, systems and decision processes in place”, said Torsten Jeworrek, member of Munich Re’s board of management and CEO of the company’s global reinsurance business. “This initiative with RMS is part of our strategy to make use of a collaborative network to complement our insights with external knowledge and translate these insights into intelligent risk management solutions. This will create value for our clients and shareholders and, thus, reinforce our leadership role of being a ‘think factory’ for the insurance industry.”
With this initiative, Munich Re and RMS will collaborate to identify and pursue shared research priorities for new and emerging sources of risk yet to be modeled, and for areas of risk that continue to present challenges in modeling and its applications, including the key drivers of uncertainty and sensitivity to data quality. Through this long-term non-exclusive collaboration, Munich Re will augment its capabilities and robust set of in-house models with new insights to further optimize its risk management and to develop innovative new re/insurance and capital market solutions for its clients. RMS will enhance and extend its range of modeling products and services and will offer these broadly to the market. RMS will continue to act independently as modeler in alternative risk transfer solutions for Munich Re.
“Munich Re is already an industry leader in its utilization of models to make effective business decisions,” said Hemant Shah, president & CEO of RMS. “Looking forward, both RMS and Munich Re see significant opportunities for catastrophe and other classes of risk models to catalyze an even greater degree of innovation and efficiency in risk management practices. We look forward to exploring the frontiers together, and to this exciting collaboration.”