Everything you need to build bespoke catastrophe models is HERE

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1 Everything you need to build bespoke catastrophe models is HERE

2 The Building Blocks Scientific and engineering expertise RiskInsightConnect Advanced tools for customizing model components WindfieldBuilder HazardMapper DamageRatesManager Open, flexible loss modeling platform RiskInsight Advanced models and applications now make it possible and more efficient for many insurers and reinsurers to build their own bespoke catastrophe models. Faster computers, sophisticated mapping and graphics technology, and new web services mean you can create your proprietary views of risk scientifically and cost effectively. By starting with a comprehensive and robust modeling platform, you don t have to hire dozens of software developers to build your models. The RiskInsight open modeling platform comes with the four components of every catastrophe model: event generation, intensity calculation, damage estimation and financial loss calculation. These components are visible and easily customizable with built-in tools, such as WindfieldBuilder, HazardMapper and DamageRatesManager. WindfieldBuilder enables you to create custom tropical cyclone events and your own catalogs of events. For example, if you want to test the potential impacts of climate change, you can increase the wind speeds of the events in the catalog according to the most current scientific research. You no longer have to wait for an external third party model update. HazardMapper enables you to create earthquake, flood, severe storm, and other types of events anywhere in the world. DamageRatesManager is a powerful tool for customizing and creating vulnerability curves tailored to your specific books of business. If you don t have enough internal expertise to build a model for a particular peril region, you can access a network of global experts via RiskInsightConnect. These experts can provide you with valuable data, consulting services, and credible model components that you can download directly from the website and use in RiskInsight. KCC experts vet and test all of the RiskInsightConnect resources so you can be confident in the high quality of the models and information.

3 RiskInsight Open Loss Modeling Platform is the Foundation RiskInsight is the open loss modeling platform used by major insurers, global reinsurers, and ILS investors to build bespoke high resolution catastrophe models. RiskInsight s open and transparent architecture gives you unique insights into catastrophe risk and control over your model assumptions. By taking control you have more confidence in your risk management decisions and competitive advantage over companies relying on external third party models. Full Transparency Lower Modeling Costs Enhanced Process Efficiencies Control Over Model Assumptions More Confidence in Risk Management Decisions RiskInsight comes with robust Reference Models for US hurricane, storm surge flooding, and earthquake. These Reference Models provide credible results for entire portfolios of properties along with stable loss estimates for individual locations and policies. The RiskInsight Reference Models can be used as is to generate exceedence probability (EP) curves and all of the associated risk metrics you re used to seeing along with the unique Characteristic Event (CE) information. All of the model components are transparent so you can easily verify the reliability of the information. Hurricane Storm Surge Flooding Earthquake

4 How RiskInsight Delivers Advanced Modeling Capabilities How Does RiskInsight Deliver Transparency? The catastrophe models have four primary components: event generation, intensity calculation, damage, and loss estimation. In RiskInsight the major assumptions underlying these components are completely visible to the user. Events and Intensities Every event has an ID and the intensity footprint can be viewed on built-in high resolution maps. For example, you can zoom in to see the location-level wind speeds for the 100 year events. Damage and Loss The damage functions by construction, occupancy, year built and region are fully transparent and can be viewed in tables and graphs. For any mean damage rate, RiskInsight automatically calculates the secondary uncertainty. RiskInsight provides the complete transparency necessary to meet growing regulatory requirements, including Solvency II. How Does RiskInsight Give You More Control Over Risk Management Decisions? Along with being fully transparent, the assumptions in RiskInsight can be customized based on your proprietary data and specialized internal expertise. For example, insurers accumulate valuable databases of claims information after significant events; this valuable data can be used to customize the vulnerability curves for competitive advantage. Rather than sending proprietary data to external third parties, RiskInsight enables you to leverage your data and knowledge using your own in-house expertise and experts of your own choosing. Because RiskInsight comes with built-in tools that make it easy to customize event frequency, severity, and damageability, you don t need specialized computer programmers to customize your own views of risk.

5 Competitive Advantage and Enhanced Financial Results WindfieldBuilder enables you to create your own wind footprints and event catalogs with just a few steps and to track live events in real time. WindfieldBuilder automatically reads in information from the National Hurricane Center and creates the wind footprints so you can generate real time loss estimates. HazardMapper gives you the same capabilities for other perils, such as earthquakes and severe convective storms. Once you ve created your proprietary view of risk, it won t change until you change it. This gives you much more control over your business decisions and risk management strategies. How Does RiskInsight Enhance Efficiency? RiskInsight enhances your internal process efficiency in multiple ways. Along with giving you tools for efficiently customizing model assumptions, RiskInsight is a complete toolkit for exposure data management, modeling, and portfolio reporting and comes with built in modules for: High resolution mapping down to the location level Charting and graphing data from all standard formats and custom databases Exposure data scoring Custom dashboards and reports Comparing data over time

6 Advanced Tools Enable You to Customize Model Components Efficiently, Cost Effectively, and Scientifically WindfieldBuilder Create custom events and catalogs Test the impacts of climate change and near term hurricane activity Track events in real time and estimate losses for live cat covers HazardMapper Evaluate historical and simulated earthquake catalogs See how different attenuation equations impact your loss estimates Build tornado, hail and other wind footprints DamageRatesManager Customize peril-specific damage functions by construction and occupancy Define new variables for estimating vulnerability Assign damage functions by location

7 Access Data, Information, and Global Experts Through RiskInsightConnect With the RiskInsight suite of Reference Models, tools and web services, you don t need an internal army of scientists and engineers to build your bespoke models. Most companies have internal experts who run, test, and adjust the third party vendor models. Because they can t actually see all the underlying assumptions in third party models, but must infer those assumptions through time-consuming tests of the model output, your modeling experts already spend significant resources running the vendor models. With RiskInsight, this time and expertise can be better leveraged to fully understand and customize model assumptions directly. If you do require additional expertise for a particular peril region, RiskInsightConnect makes it easy to find the experts you need. Our network of global experts continues to grow because there are hundreds of knowledgeable scientists and engineers around the world who can help you better understand and manage catastrophe risk. In RiskInsightConnect you can filter by peril and region to see what resources are readily available to you. You can directly communicate and message experts within the site without giving your address or other personal information. You can browse the store of Data Resources that includes scientific information, data on catastrophes, and pre-validated model components, such as event catalogs and damage functions. You can view and analyze the model components before you decide to purchase. Once you purchase the information you want, the data is seamlessly downloaded into RiskInsight. All of the external experts are vetted, and the data and model components are tested by KCC experts before they are posted on RiskInsightConnect.

8 For more information contact RiskInsight and WindfieldBuilder are registered trademarks of Karen Clark & Company HazardMapper and RiskInsightConnect are trademarks of Karen Clark & Company 2015 all rights reserved 2 COPLEY PLACE BOSTON, MA