Financial services technology provider Simplitium has extended CAT modelling platform ModEx with reinsurance capability.

Simplitium

Image: Simplitium adds reinsurance capabilities to ModEx platform. Photo: Courtesy of Lee Campbell/Unsplash

ModEx is the multi-peril catastrophe risk modelling platform operated on the Oasis Loss Modelling Framework (LMF). It offers a hosted and fully managed catastrophe risk modelling service that offers a new and cost-effective way for firms to meet their modelling needs.

The new introduction expands the scope of ModEx to include the financial structures needed to model reinsurance contracts, offering support for facultative, quota share, surplus share, per risk excess of loss and catastrophe excess of loss.

It allows firms to develop a better understanding of their risks through comprehensive analysis.

Simplitium said the implementation of reinsurance represents a significant step forward in the evolution of ModEx as it brings highly sought-after functionality to the modelling platform.

The company’s Open Exposure Data (OED), which was introduced in September 2018, provides better exposure import format required for the Oasis LMF to implement reinsurance. OED is now fully documented and validated in ModEx.

Simplitium insurance product development head Matthew Jones said: “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.

“Crucially, this implementation strengthens ModEx’s position in the market as a viable alternative, or complement, to the incumbent modelling platforms.”

Simplitium said ModEx creates an ecosystem in which model vendors can make their models, hazard data and analytics available to the industry through a single platform.

The ModEx platform houses catastrophe models from eight different model vendors and a range of hazard data products.

Simplitium developed OED in collaboration with the insurance industry to deliver a documented exposure framework for Oasis-based platforms and models.

OED is designed in conjunction with an industry working group, led by Simplitium’s lead insurance product developer, Aiste Kalinauskait.

It is based on AIR’s CEDE code-set and featurtes four input files (account, location, reinsurance_info and reinsurance_scope) and more than 20 back-end relational tables.