Infrastructure for Catastrophe Modeling & Exposure Management

Catastrophe modeling requires documented methodology for geocoding quality, vendor model selection rationale, and portfolio aggregation assumptions. PML curves submitted to reinsurers and regulators must cite current, findable model versions and assumptions. L3 reflects that cat model run parameters, reinsurance treaty terms, and exposure aggregation methodology are documented and retrievable, though vendor model calibration choices and expert judgment on secondary uncertainty remain partially tacit.

Catastrophe exposure management requires systematic capture of geocoded policy exposure data, property characteristics (construction type, occupancy, protection class), and policy limits as policies are bound and renewed. Template-driven capture at policy inception ensures the cat model receives complete location-level data for event simulation. L3 reflects that exposure data is captured through defined workflows in policy admin, though not yet fully automated in real-time.

Catastrophe event simulation requires formal ontology defining property exposure entities: Location.Geocode, Location.ConstructionType, Location.OccupancyClass, Policy.Limit, Policy.Deductible, ReinsuranceTreaty.RetentionLayer. Vendor cat models (RMS, AIR) require machine-readable exposure files in defined schemas. Without formal entity definitions and relationship mappings, the model can't aggregate correlated losses across a geographic footprint to produce credible PML curves.

Cat modeling requires API access to the policy administration system (exposure data), geocoding services, vendor cat model platforms, and reinsurance reporting systems. API connectivity enables automated exposure extraction and model submission without manual file preparation. L3 reflects current achievability—most data sources accessible via API, enabling the cat model to pull current portfolio exposure for scenario runs without manual extract-and-upload cycles.

Cat model outputs must reflect current portfolio exposure—policies bound, endorsed, or cancelled since the last run must be incorporated before each PML analysis. Event-triggered maintenance ensures exposure data updates when policy records change, vendor model updates when scientific calibrations are released, and reinsurance treaty terms update at renewal. L3 event-triggered updates align with underwriting workflows and annual reinsurance renewal cycles.

Catastrophe exposure management integrates policy admin (exposure source), geocoding services, vendor cat model platforms (RMS, AIR, Verisk), and reinsurance reporting systems. API-based connections enable automated exposure submission to vendor platforms and return of PML results for aggregation reporting. Reinsurance recovery estimates flow to financial systems via connected workflows rather than manual spreadsheet transfer.