CatX integrates Moody’s RMS risk analytics into risk capital exchange

CatX, a digital catastrophe and parametric risk exchange start-up, has announced that it is integrating risk analytics from Moody’s RMS into its offering, to bring modelling capabilities to users of its product.

CatX aims to make the transfer of insurance risk faster and more efficient, while also enabling alternative forms of reinsurance capital to connect with it more easily, so the inclusion of risk analytics capabilities to help capital providers in their decision-making will enhance the product offering.

The company said that the incorporation of Moody’s RMS analytics into the CatX product will, “support brokers and cedents in accessing a broader capacity base as well as model and price risk more effectively.”

On the capital side, “Institutional investors can leverage the leading natural catastrophe models in the reinsurance market to better understand underlying risks when making investment decisions,” the company further explained.

CatX users will be able to access comprehensive risk analysis and modeling tools from Moody’s RMS from within the CatX platform, helping them to make better informed investment decisions and to identify capital allocation opportunities.

Cedents will be able to run simulations to identify an optimum capital structure, including the benchmarking of traditional and alternative sources of capacity, while re/insurers, brokers and ILS investors will benefit from a shared view of risk, which alongside simplified communication is expected to help parties to close transactions faster.

Ben Brookes, Managing Director at Moody’s RMS, commented, “We are delighted to extend and strengthen our work with CatX and excited to show how our data and analytics can enhance the speed, precision, and consistency across all risk decisions. As the increased impact from major catastrophic events such as floods and wildfires continue to evolve, brokers and insurers are keen to embrace the latest science and technology to help them better understand the risks and opportunities they face.”

Benedict Altier, Chief Executive Officer of CatX, said, “Moody’s RMS is a trusted name in insurance risk modeling. We are excited to utilize their models and technology to assist our insurance and investment partners in enhancing their risk placement processes. This strategic partnership emphasizes our shared goal to improve investor access to top-tier modeling for insurance-linked securities.”

Lucas Schneider, Chief Technology Officer at CatX added, “We’re thrilled to partner with Moody’s RMS to bring their world-class analytics, including natural catastrophe and cyber modeling to CatX. This collaboration enhances our analytics capabilities and allows our users to access RMS‘ risk view, which will help bring more alternative capital to the insurance industry.”