Catastrophe Risk Consulting Services
EQECAT's Consulting Services group solves catastrophic risk business problems for clients in the real estate, finance, insurance, and related industries. Business problems often require greater flexibility than is available in standard natural catastrophe products. Catastrophe risk consulting representatives work closely with clients to understand the nature of a problem necessary to develop innovative and customized solutions.
Catastrophe risk consulting services from EQECAT include:
Portfolio Risk Analysis
EQECAT provides risk analysis services to clients who have interest in EQECAT's view of their catastrophe risk worldwide. EQECAT's Consulting Services group use the RQE™ (Risk Quantification & Engineering) cat modeling platform to perform analyses, and provides both standard model output and reports as well as customized reports and insight into the modeled risk as requested by our clients. In addition to providing standard portfolio analysis services to our clients, EQECAT's Consulting Services group also provides the following offerings.
US Flood Risk Analysis
EQECAT provides flood risk analysis consulting services for the United States at the site and portfolio levels based upon the latest flood modeling methodologies for the country.
Mortgage Impairment Risk Analysis
Mortgage impairment risk analysis
provides residential mortgage lenders with insight into potential impacts of natural catastrophe losses on mortgage default risk to their business.
Wind Turbine Risk Assessment - Energy Analytics
EQECAT works in conjunction with ABS Consulting to provide wind turbine risk assessment and energy analytics - a unique combination of high-end engineering,
project certification, technical due diligence, risk assessment, insurance and risk transfer services to the wind power market.
Portfolio Optimization Services
EQECAT developed highly sophisticated tools and techniques that help clients effectively develop business strategies that optimize return on capital. Portfolio optimization studies can identify the best and worst region for geographic regions for growth, evaluate the attractiveness of an acquisition, divestiture or take out opportunity and identify the accounts that adversely impact use of capacity and profits.
Insurance-Linked Securities Consulting
Insurance-linked securities consulting and risk modeling services aid insurance, reinsurance, corporate, and government clients by assisting them with the placement of insurance risk into the capital markets.
Professional commentaries and risk analysis for cat bonds are now available as a subscription through an EQECAT consulting agreement. Professional Commentaries provide investors with a complete probabilistic risk analysis of the defined transaction structure, providing full risk metrics, expected loss contribution, descriptions of the peril(s), underlying models used, historical catastrophic activity, descriptions of the risk (portfolio) being transferred, and EQECAT's perspective on salient considerations for the particular tranche.
Insured Loss Database
EQECAT's Insured Loss Database (ILD) quantifies insured exposure by region and line of business (LOB) and is delivered in an easy-to-use Microsoft® SQL Server® format. ILDs provide a perspective of regional insured market risk, enabling detailed evaluation of the severity of potential insured risk.
Tools & Support
EQECAT develops tools and support to allow clients to maximize the value of their catastrophe modeling investment.
Model blending combines different views of risk for the same set of peril/exposure (typically from different vendor cat models) or combines different modeled views of risk from independent perils.
Model blending is used to:
- Combine views of risk from multiple vendor models for the same portfolio
- Choose different vendor models for different pieces of risk (model clashing)
- Borrow essential building blocks to create new views and build custom risk metrics
- Create combined multi-modeler/multi-peril views of risk
Customized Integration Services are Consulting Services Group (CSG) offerings that support the integration
of the RQE™ catastrophe modeling platform within a client's business
environment. These services consider integration both upstream and downstream — from accessing and
automating upstream data (exposure data and underwriting decisions) through providing analysis results
and output to downstream applications such as Dynamic Financial Analysis (DFA) tools, Capital Asset Pricing
Models (CAPM), Enterprise Risk Management tools, and customized reporting facilities.
Turn-key Solutions enable licensees to fully utilize EQECAT models and platforms immediately upon installation or upgrade. EQECAT's Consulting Services team will tailor the platform/model installation to meet client needs, including:
- Pre-import and analysis of client portfolios to provide clients with analysis output, customized templates, and allow clients to use the model immediately upon installation
- Data cleansing, mapping, and development of customized RQE templates to assist in adoption of the RQE platform
- Development of customized techniques, tools, and reports to allow clients to utilize EQECAT's modeled output within their unique workflow and operational framework
Custom software can be developed for many specialized lines of business and hazards. EQECAT developed customized underwriting systems for HPR writer, tailored vulnerability functions for selected geographic areas such as Japan and Taiwan, and developed tailored models for European floods, US winter ice storms and other hazards.
Dynamic Financial Analysis
Dynamic financial analysis services help clients quantify and understand risk over multi-year planning horizons and for evaluating financial requirements for self-funding risk.
EQECAT has been highly effective supporting both earthquake and wind rate filings. Topmost in that regard was the CEA, which involved public rate hearings and a requirement that the model be declared "state of the art" by designated independent scientific and engineering experts.