Aon’s Impact Forecasting adopts Oasis framework to deliver ERN’s regional cat models and support more transparent risk views
Re/insurance broker Aon has expanded its open catastrophe modelling capabilities in Latin America through the implementation of the Oasis Loss Modelling Framework to deliver ERN’s regional models to clients.
The region is attracting growing interest from re/insurers seeking diversification. While climate risk remains a concern, Latin America’s cat profile, with more exposure to earthquakes than hurricanes, offers a different balance for global portfolios.
Oasis now supports a broader suite of ERN models within Impact Forecasting’s Elements platform.
Aon said this reinforced its backing for open-source initiatives that increase transparency and broaden model choice beyond traditional vendors.
The ERN additions join existing Impact Forecasting models already available in Oasis, including Europe windstorm, Europe SCS, Canada flood, Europe flood, Thailand flood and the Manhattan blast model.
Aon said climate volatility and regulatory expectations were placing pressure on insurers to ensure their risk views were both robust and adaptable.
Supporting Oasis gives re/insurers greater ownership of their modelling, Aon observed, enabling them to customise assumptions, gain portfolio-specific insights and make more informed risk and capital decisions.
Aon’s own cat risk modelling arm, Impact Forecasting, acts both as a model provider and a technology provider.
Its Elements platform allows clients to use Impact Forecasting models or integrate third-party vendor models, enabling them to benchmark and blend multiple views of risk.
Adam Podlaha, global head of Impact Forecasting, said clients need “to access catastrophe data and models through their preferred systems and platform”.
He said: “With our collaboration with Oasis LMF and positive conversations with software and model vendors, we continue to seek the best solutions and expand the range of models we offer to help quantify catastrophe risk for our clients.
“Our approach reflects Aon’s ongoing commitment to innovation, transparency and client empowerment in the evolving world of catastrophe risk management,” he added.
Paula Ferreira, Latin America CEO for reinsurance solutions at Aon, said emerging risks and persistent under-insurance were creating profitable growth opportunities in the region.
She said: “To seize these opportunities re/insurers need a clear understanding of their potential exposures. In this regard, these additional models from ERN are enabling us to deliver increasingly accurate assessments, tailored solutions and exceptional service to clients, ultimately shaping better business decisions.”
Impact Forecasting enables users to tailor catastrophe models to their own loss experience, including adjusting damage and vulnerability functions using their claims and exposure data.
Its US severe convective storm model allows the creation of custom vulnerability curves, while users can also access hazard and event data for greater transparency.
Aon said its support for open models extends beyond insurance to disaster risk reduction and risk financing projects for public sector and corporate clients.
This includes work through the Insurance Development Forum, Aon highlighted, where Impact Forecasting has contributed free-to-use scenarios in Oasis and provided event sets for typhoons and earthquakes for the Oasis Risk Explorer, as well as collaborations with development banks on multi-peril models for Vietnam and Nepal.
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