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London, United Kingdom, 2007/11/08 - Vinay Mistry, Manager of Exposure Management at Lloyds of London talks about the opportunity that Open Source Risk Modelling presents to further advance risk managers’ understanding of risk.
Catastrophe risk modelling tools are used by risk managers, insurers and re-insurers to assess the potential losses caused by natural and man-made disasters. At present, all but a few insurers rely on a single catastrophe risk model to understand disaster risk; this can leave companies in the dark as to the sensitivities that surround the choices modellers take.
Such models have recently been called “black boxes” by some professionals because their users do not get to see the inner workings of the model and have only limited options to test the impact. Vinay Mistry is Manager of Exposure Management at Lloyds of London and discusses how “Open Source Risk Modelling” could benefit the ILS and cat bond market by producing a more effective way of modelling risk.
Mistry says, “Lloyd’s believes the industry owes the catastrophe modelling firms a great debt. They have helped us to better quantify and manage risks” but continues to say “improvements could be made”.
Lloyds believe that it is possible for existing models to incorporate the most recent and relevant scientific and engineering advances into their own risk models which would increase the speed at which such models develop. “In an ideal open-source CAT model, the user would have the opportunity to choose different individual modules from different sources”.
He concludes, “The main benefit to the ILS community is an improved understanding of the risk that is being accepted onto the counterparty balance sheets”. Vinay Mistry will be hosting a detailed presentation about “Open Source Risk Modelling” at the European ILS and Cat Bond Summit 2008 which takes place on 7-8 February.
The summit agenda discusses the most business critical ILS and cat bond issues and is presented by the most expert line-up of speakers to assemble in Europe to date. Speakers include, Peter Nakada (MD, RMS Solutions), Milan Simic Ph.D (MD, AIR Worldwide), Dennis Kuzak (SVP, Eqecat), Luca Albertini (MD, Head of ILS/ABS Origination and Structuring, Swiss Re) and Rodrigo Araya (SVP, Moody’s Investors Service) amongst many others.
Talking about the event Vinay Mistry said, “There are a number of factors now converging to highlight the growing importance of cat bonds and ILS, and a combination of these make it an interesting time for the insurance industry and capital providers to see what the next stage of developments will be”.
Visit ilstoday.com to find out more about this exciting who’s who event and to find out how to qualify for a discount of up to £300!
The European ILS and Cat Bond Summit 2008 has been organised by ILS Today. We are a new company who provide intelligence, collate news, interview the world’s leading ILS experts and organise senior level business to business events specifically for the ILS community.