AInsurCo’s Seamless Upgrade of RMS RiskLink 21

AInsurCo’s Seamless Upgrade of RMS RiskLink 21

By Devangku Bhattacharjee, Manager at AInsurCo

 

Introduction: Why This Project Mattered

In 2022, AInsurCo led the successful upgrade of a re/insurance client’s catastrophe model from RMS RiskLink 18 to RMS RiskLink 21. This initiative was not just a technical refresh but a transformation in the client’s approach to risk analytics and decision-making.

The project highlighted AInsurCo’s strength in catastrophe modelling, resource scalability, and commitment to delivering complex transitions with minimal disruption.

Why the Upgrade Was Essential

Upgrading to RMS RiskLink 21 was critical due to multiple business and regulatory considerations:

  • Compliance with industry standards: Regulatory bodies expect firms to work with up-to-date models for accurate capital and risk assessment.

  • Improved insight: RMS RiskLink 21 enhanced the resolution of hazard and vulnerability data, supporting more informed underwriting.

  • Staying relevant: The shift ensured the client remained competitive among peers using modern analytics tools.



What AInsurCo Did: Structured Approach and Execution

Our role spanned strategic advisory, technical modelling, and execution management. Here is what we delivered:

Portfolio Remodelling

Reassessed the client’s Direct and Reinsurance portfolio under RMS RiskLink 21’s updated parameters, aligning results with exposure insights.

Precise Pricing Revisions

Repriced contracts to reflect changes in Expected Loss (EL) outputs between RMS RiskLink 18 and RMS RiskLink21, supporting accurate portfolio valuation.

Expected Loss (EL) Variance Tracking

Investigated and tracked discrepancies in EL across models. Where required, we deep-dived into specific contracts for validation.

Reporting and Dashboards

Developed stakeholder-facing reports and dashboards, ensuring transparency and alignment across internal and external stakeholders.

Rapid Resource Scaling

Onboarded and trained new hires efficiently to meet tight timelines while maintaining high-quality output.



Outcomes and Strategic Value Delivered

Beyond implementation, the project enabled:

  • Better Decision-Making: With more refined data and model accuracy, the client was equipped to make smarter underwriting and reinsurance decisions.

  • Regulatory Compliance: The upgrade ensured compliance with evolving modelling requirements.

  • Portfolio Optimisation: Enhanced visibility led to cost-effective reinsurance structuring and capital planning.

  • Readiness for Emerging Risks: The client is now better positioned to adapt to shifting risk environments including climate and geopolitical changes.



What Went Well (and What Did Not)

Success Highlights:

  • On-time delivery: The project was completed within the agreed timeline.

  • Effective team scaling: Rapid hiring and training aligned the team with delivery objectives.

  • Leadership guidance: Strong leadership played a key role in navigating the complexity of reinsurance modelling.

  • Clear communication: Regular stakeholder updates minimised misalignment.

Challenges Faced:

  • Training constraints: New hires needed to be brought up to speed swiftly; while demanding, this was managed successfully.

  • Unexpected EL variances: A few contracts saw more variance than expected, requiring additional modelling time.

  • Reinsurance complexity: Unlike the direct portfolio, the reinsurance process was less mature, causing delays. Additional resources were allocated to mitigate impact and ensure timely delivery.

Industry Relevance and Broader Impact

This project is a testament to the importance of continuously evolving catastrophe modelling capabilities. In a risk environment shaped by climate volatility and evolving regulations, RMS upgrades are not just about technology, they are strategic imperatives.

  • Sustainable portfolio management: Up-to-date modelling ensures better long-term outcomes.

  • Proof of capability: The project underscored AInsurCo’s ability to manage complexity and deliver results under pressure.

Conclusion: A Step Towards a More Resilient Future

At AInsurCo, we empower our clients to navigate risk transformation with agility and confidence. This RMS RiskLink upgrade project showcased our commitment to excellence, adaptability, and strategic thinking.

If your organisation is preparing for a similar upgrade or seeks to transform its risk modelling, our team would love to support your journey. Reach out to us at info@ainsurco.com.