Rival catastrophe modelling firms AIR Worldwide and Risk Management Solutions have formed an agreement to share exposure data, in response to the growing numbers of clients using multiple models.
An AIR spokesperson told Insurance Insight that the firm had observed an increasing number of insurers and reinsurers using multiple models and struggling with the workflow inefficiencies of moving exposure data between them.
“Options for addressing this situation will remain limited and imperfect until the catastrophe model providers cooperate directly to come up with a better solution,” he said.
The deal to share exposure data schemas with each other is designed to facilitate interoperability between the firms’ mutual clients.
Under the terms of the agreement each company will grant the other the right to develop capabilities in its products to directly import data from the other’s data formats.
It is a multi-year agreement, meaning that both firms will be able to maintain capabilities as future updates are made to either party’s schemes.
In a separate statement RMS commented: “Both RMS and AIR are pleased that, despite being competitors, we were able to collaborate very effectively in agreeing on an arrangement to address this issue to benefit our mutual clients.
“RMS is currently evaluating opportunities to form similar agreements with other catastrophe modelling firms.”
There has been speculation following the deal that the another major catastrophe modelling player, Eqecat, is in talks with RMS and AIR to join the alliance, but the firm has not yet confirmed whether this is the case.