The SCOR Foundation and the Geneva Association welcomed top international experts to discuss and explore the issue “How will Risk Modelling Shape the Future of Risk Transfer?” during a conference hosted at the SCOR Paris headquarters on March 9, 2017.
The last three and a half decades have witnessed a general trend of rising economic losses associated with extreme events. Risk analysis is the foundation for informed decision-making, increasing the understanding of the characteristics of risk, supporting risk pricing, and evaluating cost-benefits of various risk management strategies.
The development and utilization of catastrophe risk models (cat models) over the last 25 years has revolutionized the (re)insurance industry's approach to pricing, underwriting and managing complex risk portfolios. Beyond the insurance sector, the international development community has also adopted these models to help governments better understand risk and make risk-based decisions, helping improve disaster and climate risk management decisions.
The seminar brought together leading international experts from the (re)insurance industry, risk modelling community, international organizations, international donors, governments and the scientific community to share experiences and explore opportunities for strengthened cooperation and partnerships. The program examined the following critical issues:
- Enhancing current cat models building on lessons learned from their development and utilization over the last 25 years;
- Finding effective pathways to expand risk information and cat risk modelling tools to support public-sector decisions;
- Harnessing the latest scientific and technological developments for a new generation of forward-looking risk models.