London — Munich Re is extending its risk research and quantification capabilities through a cooperation with modeling firm Risk Management Solutions (RMS), the companies report. Munich Re and RMS says they will embark on research in new and emerging areas of risk modeling and, by that, expand the frontiers of risk modelablity and insurability.
“In view of the increasing complexity of risks, it is indispensable, particularly for insurance companies, to have sophisticated risk management tools, systems and decision processes in place", says Torsten Jeworrek, a member of Munich Re’s board of management and CEO of the company’s global reinsurance business. “This initiative with RMS is part of our strategy to make use of a collaborative network to complement our insights with external knowledge, and translate these insights into intelligent risk management solutions. This will create value for our clients and shareholders and, thus, reinforce our leadership role of being a ‘think factory’ for the insurance industry.”
With this collaborative initiative, Munich Re and RMS plan to identify and pursue shared research priorities for new and emerging sources of risk yet to be modeled, and for areas of risk that continue to present challenges in modeling and its applications, including the key drivers of uncertainty and sensitivity to data quality.
Through this long-term, non-exclusive collaboration, Munich Re will augment its capabilities and in-house models with new insights to further optimize its risk management and to develop innovative new reinsurance and capital market solutions for its clients, the company says. As a result, RMS plans to enhance and extend its range of modeling products and services, and offer them broadly to the market. RMS will continue to act independently as modeler in alternative risk transfer solutions for Munich Re.
“Munich Re is already an industry leader in its utilization of models to make effective business decisions,” says Hemant Shah, president and CEO of RMS. “Looking forward, both RMS and Munich Re see significant opportunities for catastrophe and other classes of risk models to catalyze an even greater degree of innovation and efficiency in risk management practices. We look forward to exploring the frontiers together, and to this exciting collaboration.”
Source: Risk Management Solutions
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