Global risk and reinsurance specialist Guy Carpenter & Company LLC has launched a data-driven casualty catastrophe model, called GC ForCas.
GC ForCas is a stochastic modeling platform, the company said, intended to help insurers understand their exposure to casualty catastrophe losses resulting from U.S. commercial lines insurance policies. GC ForCas uses industry sources, including Advisen’s large loss database of more than 250,000 historical losses, to anticipate the number of scenarios and line-of-business dependencies.
The move comes a month after the broker hired Matthew Eagle from Willis Re as head of catastrophe analytics for EMEA.
“To protect their capital from casualty catastrophe risk, carriers have needed tools and models that can probe a portfolio to apply potential disaster scenarios, identify likely exposures and map how liability may spread from the epicenter to other industries, jurisdictions and lines of business,” said Andrew Marcell, CEO of U.S. operations. “That is exactly what GC ForCas accomplishes.”
The first GC ForCas component addresses losses resulting from sudden disasters. Successive model components for losses resulting from financial institutions and cyber insurance policies are near completion and will be added to the GC ForCas platform, Guy Carpenter said.
“Through the use of GC ForCas, companies will be able to make better risk-informed decisions with respect to managing the accumulation of casualty catastrophe exposures, and share that information with rating agencies and other stakeholders,” said Will Garland, U.S. head of specialties at Guy Carpenter.
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