NEW YORK – Disaster modeling in the repository space for reinsurance faced challenges for adoption, but may favor the process, according to a panel of industry leaders speaking at the AIR Worldwide Cyber Casualty conference in New York on Tuesday.
There remain some basic doubts about the potential for disaster modeling, according to Adam Troyer, CEO of Aon Reinsurance Solutions.
"One of the things we find is that it is skeptical if you can model this type of risk," he said, preventing time and resources from being assigned to develop the field.
Data is one of the specific challenges to developing accident catastrophe models, says Robin Wilkinson, vice president and director of accident analysis for AIR Worldwide.
Just getting data "is one of the challenges," she said. "Historically, the accident has not kept data in a structured way."
However, some progress is being made, according to Greg McNulty, vice president of disaster catastrophe for Scor SE. 1
Disaster modeling could benefit the reinsurance buying process, Mr Troyer said, describing it as a " great opportunity to provide more quantitative rigors around the purchasing insurance process. "
He added that modeling could also help unlock the capital markets for accident insurance."
"On the real estate disaster side, the models enabled the disaster band and the alternative capital markets to flourish," he said, and could also open up opportunities to bring new ones. capital suppliers to the accident site.