Risk Management Solutions (RMS) in Newark, Calif., said today that its RiskLink catastrophe modeling software has been licensed by Lloyd's. No terms were announced.
Sarah Smith, a spokeswoman in London for the catastrophe risk management firm, said the system will be used by the Loss Modeling team within Lloyd's franchise performance directorate.
RMS said it now has relationships with 18 of the 20 largest Lloyd's managing agents and its modeling software is used by 25 of Lloyd's managing agents representing over 80 percent of the total Lloyd's market capacity.
Paul Nunn, manager of Lloyd's Loss Modeling Unit, said in a statement that licensing RMS catastrophe models "is an important step in developing a more probabilistic view of Lloyd's risk to natural hazards."
He added that the unit "will use RiskLink output to continue our development of Realistic Disaster Scenario requirements and to monitor catastrophe events as they occur."
In the wake of last week's terrorist bombings in London and Hurricane Dennis, "the importance of catastrophe modeling within a rigorous risk management program" has been highlighted, added Jason Futers, director of the London Market Industry Practice at RMS.
Mr. Futers said, "The Lloyd's market has been at the forefront of applying catastrophe models both for underwriting and internal risk management purposes, and we look forward to continuing our collaboration as catastrophe modeling is applied to an ever-broadening scope of risk management issues."
RMS said more than 400 insurers, reinsurers, trading companies and other financial institutions rely on RMS models to quantify, manage and transfer risk.
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