OasisLossModellingFrameworkBackground

June2016

Agenda

• BackgroundtoOasis• OpportunitieswithOasis• Standards• InsuranceDevelopmentForum• Oasisbenefits• Questionsweneedtoaddress?

Oasismission

• Improveriskassessmentthroughbettermodels,transparency,performance,andinnovation

• Provideopensourcesoftwareandanopenframeworkformodelandsoftwaredevelopment

• EstablishacommerciallyvibrantcommunityofprovidersandusersofOasissoftware,models,data,andtools

Oasisvision• TobethemainalternativeplatformfortheInsurancesectorandthemainplatformfornon-Insurancecatastrophemodeluse.

• Tobeafocalpointforcommunityengagementandstandardsintheareaofcatastrophemodelling.

• Bybeingopenandcuratingopensourcesoftwareenablingawidecommunityofuserstoaddinnovation,richnessandscaletoourmission.

WhatisOasis?Asoftwareplatformandacommunity

• Aflexibleplugandplayframeworkandplatformwithanewfront-end

• Allowshazard,vulnerabilityanduserinterfacespecialiststoeasilyoffertheirproducts

• Givesusersthechoice ofprovider,methodofintegrationandITenvironment

• Providesfulluncertaintyinformation

• Enablesuserstochoose theirviewofrisk

OasisLMFLtdMembers– 43↑• ClimateKIC• Lloyd’s• SCOR• XLCatlin• Validus• RenRe• TigerRisk Partners• Cathedral• Novae• Zurich• Liberty• Aspen

• AonBenfield• GuyCarpenter• Willis• PartnerRe• Allianz• Axis• Amlin• Tokio MillenniumRe/Kiln• Suncorp• JLTRe• GenRe• SwissRe• Beazley

• Argo• Ark• Ascot• Barbican• Brit• Canopius• Chaucer• Hardy• MitsuiSumitomo• QBE• R&Q• WRBerkley• XL• Axa• ANV• Ace• Markel• HannoverReandmoreinthepipeline,

thoughsomearemerging…

Over100partners

OasisprojectedModelCoverage2016Over70modelsfrom12providers

OpportunitieswithOasis-Standards

• Oasiscodecreatesstandardformodelinteroperabilitythatotherscan’tmatcheithertechnicallyoroperationally

• TheWorldBankhaveendorsedtheOasisplatformforuseintheirprojects

• TheInsuranceDevelopmentForum(IDF);Risk,ModellingandMappingGrouphavesuggestedOasisforuseintheirownanalysis

• WorkingonthedevelopmentofaglobalIndustryExposuredatasettoincludeAgricultureandInfrastructure

IDF-RMMGMissionstatement• Toincreasecollaboration,efficiency,andapplicabilityinthequantification,analysis,understandingof,andcommunicationabout,naturalhazardsriskandassociateduncertainty.

• Todothisbydevelopingmodelanddatastandardsandmethodsofinteroperabilityandtoachievethisusingmethodsandpracticesthatarebroadlyapplicable,repeatable,scalable,efficientandreduceduplication.

• Ourproductmustbedirectlyapplicabletoaugmentingtheprovisionofinsuranceandinsurancestylecontingentriskcapitalsolutions.

GoalsofRMMG(keyareas)• Catalogueexistingcapabilities,data,modelsand

platformsandde-factostandards thatmightbebroughttothequestionsathandandassessanygapsandpotentialwaystofillthem.

• Reducethecurrentduplicationofeffort,inefficiency,variabilityofquality,inapplicabilityandunrepeatabilityofmanyactivitiesthatareundertaken todevelophazardandriskunderstandingcurrently.

• Developaframeworkthatthoseinvolvedmayfollowinthequantificationofhazardandriskfortheimprovementoftheresiliencyofsocietiesandeconomiestomoreefficientlyinformthedecisionprocess.

• Developstandards fordata,modelsandplatformsthatwillenablemoreefficientdevelopmentanddonorfocustowardsmoreefficientandconsistentunderstandingofrisk.

If…

Standards areadopted by users

Provide anopensource,transparent,standardizedapproach forclimatecatastrophe riskmodeling

Develop anopenaccess e-Marketplacewithmatch-makingfacilitytolinkdemand andsupply formodels

Cost ofaccessing data/modelsdecreases by50%throughincreasedcompetition &economies of scale

Commitment formore than70models from 12differentmodelproviders andconnected withusers

Then…

Morepeople can understand &buildcatriskmodels

Highercatastrophe riskinsurancepenetration

Decision-makers areempoweredtobettermanage climaterelatedrisks

FUNCTIONS/SERVICES OUTCOMES IMPACTS GOAL

Improved understanding of riskallowingimproved underwriting

Decision-makers (policy&business)use catastrophe riskmodeling tosupport adaptation planning andinvestment decisions

INCREASED RESILIENCE TOCLIMATE-RELATEDCATASTROPHES AND IMPROVEDUNDERSTANDING ANDPROFITABILITY OFRISKASSESMENT.

Insurance products offered increasesasnewterritoriesand perilsarecovered

UNDERSTANDINGTHEBENEFITSOFOASIS

Improved understanding of riskallowingmore efficient use of capitalinlightof capitalrequirements

“ThePlatform”

Build acommunity ofsuppliers andusers toserveeach othersneeds formutualbenefit

Reduce costs of usingand buildingcatastrophemodels

Oasisbenefits

Questionswewillneedtoaddress?• Howmuchstandardisation canwepracticallyhave?

• Wherecanandshouldcollaborationbeincreased?– ACORD,GEM,PERILS,Oasis,IDF?

• Whatmoreshouldwedoonvalidationandtransparencyofmodels?

• Howmanyplatformsdoweneed?• Whoownsthestandards?Howdowecreatestandards?

• Isregulationhelpingus?• Whatroledoesacademiaplaynowandinthefuture?

Contactdetails

RegisteredAddress:20-22BedfordRowLondonWC1R4JSUnitedKingdom

Email:info@oasislmf.org

Web:www.oasislmf.org

OasisLossModelling FrameworkLtd.

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