Realistic Disaster Scenarios

Careful management of catastrophe risk is a business imperative at Lloyd’s. Past experience shows that the market needs to be able to withstand multiple catastrophe events in any given year.

Lloyd’s maintains a set of mandatory Realistic Disaster Scenarios (RDS) to stress test both individual syndicates and the market as a whole. The event scenarios are regularly reviewed to ensure they represent material catastrophe risks.

There are three sets of Realistic Disaster Scenarios. First are the compulsory scenarios, for which all syndicates report estimated losses to Lloyd’s; these represent events to which most of the market would potentially be exposed, and for which Lloyd's monitors the total of all syndicate losses. There is a set of more specialist scenarios, which need only be reported if estimated losses exceed a threshold. Finally, there are two events which syndicates must define for themselves as representing material potential losses not captured in other scenarios.

Downloads

RDS Scenario Specification 2013  pdf file
RDS Scenario Specification 2014

Our required set of scenarios to help test the effect of catastrophes on insurance markets.

RDS Scenario Specification 2013  pdf file
RDS Scenario Specification 2013

Our required set of scenarios to help test the effect of catastrophes on insurance markets.

RDS 2011 Thumbnail  pdf file
RDS Scenario Specification 2012 v1.1

Our required set of scenarios to help test the effect of catastrophes on insurance markets v1.1.

RDS 2011 Thumbnail  pdf file
RDS Scenario Specification 2011

Our required set of scenarios to help test the effect of catastrophes on insurance markets.

RDS Scenario Specification 2010 (6MB)  pdf file
RDS Scenario Specification 2010

Our required set of scenarios to help test the effect of catastrophes on insurance markets.

See Also