Global data analytics and technology provider Verisk has made significant strides in the area of global catastrophe modeling and risk analysis, having rolled out its Next Generation Models (NGM) in what the company described as a “monumental leap” forward.
NGM consists of over 100 models that feature a new financial modeling framework aimed at more precisely predicting insured losses resulting from extreme events. The models are now accessible through Verisk’s Touchstone platform.
Verisk highlighted: “This launch marks the first successful effort by a catastrophe modeling firm to bring its full suite of models to a next-generation modeling framework.”
NGM introduces several benefits, including a refined risk assessment process, broader capabilities for dealing with complex insurance policy structures, a more profound understanding of uncertainty, a more comprehensive approach to natural catastrophe risk management, improvements to financial modeling, and workflow enhancements.
The updated financial framework offers improved handling of complex policy terms and models uncertainty, supported by streamlined exposure coding and greater efficiency.
Rob Newbold, president of Extreme Event Solutions at Verisk, highlighted the significance of NGM's launch: “The release of NGM is the next step in our ongoing commitment to making societies more resilient and helping the insurance industry provide protection to their clients when they are impacted by the devastating impacts of natural catastrophes.
“The insurance industry is evolving, creating new and innovative methods for writing policies in a more complex risk environment. By rebuilding the financial modeling framework that sits behind Verisk’s catastrophe models, we are providing the industry with more flexible and robust tools for underwriting, pricing new business, and managing portfolio risk.
“NGM will also serve as the basis for our cloud-native platforms which will bring further improvements in both insurance and reinsurance workflows.”
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