Reinsurance contract modelling capabilities have been added to the Simplitium owned ModEx catastrophe risk modelling platform, which is an independent multi-vendor solution powered by open-source platform Oasis.
It’s the first time that an Oasis platform has included specific modelling functionality for reinsurance contracts, a step forwards for the use of the open-source tool and increasing its relevance for the insurance-linked securities (ILS) market.
Financial services technology provider Simplitium, which is a wholly owned subsidiary of Cinnober Financial Technology, said that ModEx’s new reinsurance capabilities expand the scope of the platform to include the financial structures needed to model reinsurance contracts.
As a result, users can now model facultative, quota share, surplus share, per risk excess of loss and catastrophe excess of loss reinsurance contracts in ModEx, enabling them to enhance their understanding of risks and analyse the most appropriate reinsurance arrangements to use.
Simplitium said that this reinsurance functionality was highly sought-after by its clients and leverages the work it has already done with its Open Exposure Data (OED) format which was required for the Oasis Loss Modelling Framework (LMF) to implement reinsurance.
“Reinsurance represented a major gap in the Oasis offering which has now been filled. The implementation of reinsurance in ModEx is a significant milestone as the platform develops and expands its offering,” explained Dr. Matthew Jones, Head of Insurance Product Development at Simplitium. “Crucially, this implementation strengthens ModEx’s position in the market as a viable alternative, or complement, to the incumbent modelling platforms.”
ModEx now provides another option for ILS fund managers and investors looking to model reinsurance contracts and given its open-source background the product features catastrophe models from 8 different model vendors as well as a range of hazard data products.