Recent natural catastrophe losses in Europe have been dominated by large flood, hail and convective storm events that have often impacted several countries at a time.

Eunice – Haslemere, UK, Saturday, 19th February

Yet, the cluster of storms Ylenia, Zeynep and Antonia (Dudley, Eunice and Franklin) in February 2022 reminded the insurance industry of the materiality of windstorm risk, despite recent years of low storm activity. Whether you are a large reinsurer taking on Europe-wide exposures or a primary covering a domestic book of business, it has never been more important to accurately capture the increasingly complex regional dynamics of these perils. 

RMS is excited to launch the Europe Windstorm HD Models in spring 2023. This model release will complete the full suite of RMS climate HD Models for Europe, which already includes the Europe Severe Convective Storm and Inland Flood HD Models, helping you build a consistent and unified view of climate risk across the continent. 

Building a consistent view of climate risk across Europe 

Reconciling different model vendor approaches can make pricing practices very complex. RMS HD modelling provides a common framework to build a consistent view of risk across flood, severe convective storms and windstorm risk in Europe. Customers benefit from shared exposure data across peril models, and consistent geocoding, vulnerability approach, building inventory and financial engines. The simulation length of 50,000 years is also aligned across each model to make grouping analyses simple. And the ability to run climate-conditioned views helps you to understand long-term climate change risk, enabling you to further develop your view of European climate risk. 

HD framework delivers a more realistic representation of climate risk 

Leveraging the power and scale of the RMS Intelligent Risk Platform, the new Europe Windstorm HD Models deliver a more realistic view of event losses. The cloud-native framework allows for a very large event set and number of simulations improving the robustness of the models for better estimates of tail risk. And with temporal simulation you can accurately model the time-dependencies of events including seasonality, antecedent conditions and clustering of events. 

The HD framework also ensures high hazard gradient perils such as storm surge are modelled at a granular level with a robust disaggregation methodology for low-resolution or aggregate exposure data. And the advanced financial engine has been developed to capture any (re)insurance term including complex conditions such as aggregate treaties and hours clause. 

RMS is your vendor for gaining the most complete view of risk 

The Europe Windstorm HD Models have been completely rebuilt, utilising the latest science and data, and reflecting the long experience RMS has acquired in modelling windstorm risk over the past decades. Coupled with Europe Severe Convective Storm and Inland Flood HD Models, RMS provides the greatest geographical coverage across the continent and the most diverse set of models, helping you to gain the most complete view of European climate risk. 

Giovanni Leoncini is senior product manager at RMS