Eqecat, Inc., the Oakland, Calif.-based catastrophe modeling firm, said today that Lloyd's, had signed a licensing agreement to use the firm's WORLDCATenterprise software for its catastrophe risk assessment.
Terms of the deal were not disclosed.
Tom Larsen, Eqecat senior vice president said the license is for the Lloyd's central entity, which is responsible for maintaining the fiscal adequacy of its 62 underwriting syndicates. It will be used to assess individual syndicate aggregate risk exposures in the areas where they write business and compare it with their capacity, he explained.
He said the license arrangement is on a subscription basis every year and would cover models for areas in the United States, Japan and Europe with the potential for the most costly insured loss events.
"We are delighted Lloyd's has chosen to incorporate Eqecat's WORLDCATenterprise platform into their highly regarded risk assessment process," said Rick Clinton, president of Eqecat.
Eqecat said its WORLDCATenterprise includes 167 natural hazard software models for 88 countries in six continents.
Mr. Clinton said "Lloyd's confidence in using our modeling capabilities underscores our success in providing valuable, accurate, and user-friendly technology to meet the needs of an ever-changing market environment."
According to the firm's announcement, Paul Nunn, manager of Lloyd's Loss Modeling Unit, said, "Lloyd's sees licensing Eqecat's model technology as an important component in our development of a probabilistic framework for assessing catastrophic risk to the Lloyd's market."
Lloyd's specialist insurance market reports occupies sixth place in terms of global reinsurance premium income, and is the second largest surplus lines insurer in the United States. In 2005, 62 syndicates are underwriting insurance at Lloyd's, covering all classes of business from more than 200 countries and territories worldwide
EQECAT is a subsidiary of ABS Consulting.
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