In this interview with The Insurer TV, Dan Becker, CEO of Global Analytics and Advisory, and Josh Darr, Global Head of Peril Advisory, discussed how catastrophe modeling is transforming how the (re)insurance industry measures and manages risk.
“The biggest updates this year are in North America, where companies are going to have to grapple with both an updated perspective on cat risk itself, and the way the models operate,” Dan explained. “In the past, a change of this size would have been very disruptive. Today, the market is much better at absorbing it because firms have invested in building their own view of risk.”
Josh noted how richer claims data is unlocking deeper insights into frequency risk.
“Cat models generations ago were meant to price tail risk—how much reinsurance do I need to buy?” Josh said. “Now with more convective storm, flood and wildfire data, the industry is developing better acumen around high-frequency underwriting. That’s where the pain has been felt in recent years.”