The magnitude and range of the model loss estimates from recent natural catastrophes has turned the spotlight on catastrophe models, including the skill of the modeling approach and the reasonableness of underlying assumptions. More than ever before, industry stakeholders are calling on insurers to address the validity of the models they use to manage these risks.
Users can achieve a series of positive outcomes by actively pursuing a robust catastrophe model validation program, including:
Our insurance risk and capital management practice advises insurers on assessing, monitoring and managing risks from all sources. Multi-disciplinary teams provide comprehensive services in all key risk areas:
PwC’s professionals also address risk management framework components, including strategy, governance and organization, measurement and analytics, reporting, and systems and data infrastructure.
Manager, Actuarial Services, PwC US