Adityam Krovvidi, Risk Analytics Advisor at ValueMomentum

Maximizing value requires insurers to move beyond simply running models for compliance and reinsurance. They need to integrate CAT modeling in the broader analytics and business strategy and embed the outputs in the value chain of enterprise risk management.

There are six core pillars: account modeling, roll-up and portfolio modeling, reinsurance modeling, event response modeling, catastrophe R&D, and then supporting activities.

Together these pillars enable us to do better risk selection and pricing at the underwriting level, do better exposure management, and do better reinsurance optimization.

Event response supports IBNR loss estimation, resource allocation, and also stakeholder communication.

Catastrophe R&D helps validate the models and develop one’s own view of risk.

Finally, the supporting capabilities like data enrichment, geospatial analytics, visualization, and automation — all these go a long way in building a resilient modern CAT modeling function.