Two of the three biggest risk modellers, AIR Worldwide and Eqecat, launched new risk management platforms in January, called Touchstone and RQE respectively.
The third company, Risk Management Solutions, seemed to be late to the party. However, at its Exceedance 2013 client conference last week it unveiled RMS(one), which will be generally available from April 2014.
RMS(one) has been in development for three years. In some ways it is the RMS answer to Touchstone and RQE. However, it also takes the concept of risk management platforms and competition between the main risk modelling firms to a new level.
Here is the GR guide to RMS(one).
What is it?
As its name suggests, RMS(one) is designed to allow customers to run all their exposure and risk management tools from a single interface. This includes both RMS models and analytics and those provided by third parties.
Insurance and reinsurance companies can use RMS(one) to combine exposure data, models, analytics and applications to create their own view of risk.
In keeping with the offerings of some of its rivals, there is a strong focus on visualisation of risk data – presenting it in graphic format so it is easy for all in an organisation to understand – even those without technical modelling expertise.
The models, analytics and apps run in a software environment that RMS calls the analytic operating system (AoS). RMS(one) is only available via the RMS Cloud, which means users access it remotely rather than have technology on-site.
The AoS and RMS Cloud setup will allow users to run new high-definition models. While the results of the models will be the same as those on the current RiskLink modelling platform, the new high-definition models will give users greater visibility of and control over the assumptions the models use to generate their output.
What is different about it?
The most important difference is its acceptance of third-party models, analytics and applications. This introduces a new element of competition to the risk modelling industry. Instead of competing solely on model breadth and quality, risk modellers could now start competing on providing the best risk management platform.
It also acknowledges that no one risk modeller has all the answers. Allowing third parties to develop models and applications for RMS(one) should allow RMS to give its users a more complete view of risk than more closed systems.
Another difference is that unlike its peers’ offerings, which offer a choice of delivery methods, RMS(one) is only available in the cloud. RMS says this is necessary to be able to deliver the computing power and scalability needed to deliver the benefits of RMS(one).
The entire system has also been purpose-built for the insurance industry. RMS chief executive Hemant Shah (pictured) said: “We have not just competently assembled disparate technologies and stitched them together to deliver an answer.”
What problems does it hope to solve?
RMS(one) is designed to solve several issues that have arisen from the industry’s growing use of models.
One is that all the various sources of data a company needs to create its own view of risk can be fragmented. Companies need to draw on their own exposure data, models from various sources and external data. RMS(one) aims to bring them all together.
Also, over the past two years, (re)insurers and modellers alike have been extolling the virtues of a multi-model approach – combining several views of risk. The problem is that not all companies have the resources to implement the modelling platforms of all the various companies.