The team maintains and runs the Lloyd's Catastrophe Model (LCM), a core component of Lloyd's Internal Model. The team also runs the Realistic Disaster Scenario (RDS) process which provides Lloyd's with an informative view of aggregation risks within both the syndicates and the market. This includes the production of various regulatory information including Earthquake reserving for Canada.
The annual RDS process asks syndicates to estimate the losses they would incur from a variety of hypothetical disaster scenarios, using consistent and appropriate methods and assumptions. It includes gathering comprehensive data from the market on business written, reinsurance arrangements and detailed modelling of various risk events to detect areas of potential concern. In the event of an actual catastrophe occurring, the information base and risk model facilitates timely estimates of Lloyd's exposure.
The team is split into four areas:
Exposure Management Modelling
Exposure Management Oversight