THIS WEEK'S RMN
MARKETS · SCS Has Crossed the Catastrophe Threshold
Sequential loss accumulation and a structurally mismatched soft market are setting up a collision the industry may not see coming. — Read →
MODELS · Wildfire Mitigation Is Working But The Models Can't Prove It or Price It
Reinsurance and modeling professionals say pricing individual mitigation remains structurally unsolvable, and the industry's most consequential data problem may not be a data problem at all. — Read →
MODELS · Closely Watched, Half-Century-Old Hurricane Model Debuts AI-Assisted Forecast
CSU added AI to its hurricane forecast toolkit this year, then used it to argue against its own historical data. — Read →
MARKETS · California Puts $3.5B Price on Wildfire Risk Transfer
A study opens the door to on nog the largest potential government cat bond and reinsurance program in U.S. history.. — Read →
The disruption of the federal climate observational network is not yet reflected in catastrophe model pricing or board-level risk assessment and the scientists working within the private market say the organizational structures meant to surface risk on the balance sheet may be broken.
Kelly Hereid, Head of Catastrophe Research and Development at Liberty Mutual, told attendees at last week’s Climate Tech Connect conference that the market has not priced the balance sheet risk of losing the data foundations of private market catastrophe models as a result of Trump Administration budget cuts.
"If you are shipping your flagship products that are based on a critical piece of science that has some question marks around it," Hereid said, "you would hope that your public policy team would have opinions about that."
Hereid explained that the scientific technical exposure to real assets runs deeper than most executive teams have been walked through.
