AIR catastrophe model

Category: Pricing & rating · Reviewed by Jake Leat, Associate Director · Last reviewed

AIR catastrophe model

AIR Worldwide, now branded Verisk Extreme Event Solutions, is the other major commercial cat model vendor alongside RMS. Founded in Boston in 1987, it pioneered probabilistic hurricane modelling for the US market.

Key products

• Touchstone — flagship modelling platform covering global perils.
• Touchstone Re — for reinsurer accumulation and pricing.
• AIR cyber model.
• AIR pandemic model.
• AIR terror model.
• Industry Exposure Database — country-level benchmark exposure.

Methodology differentiators

• Strong hurricane and earthquake modelling heritage.
• High-resolution stochastic event sets for wind perils.
• Probabilistic flood model coverage in UK, Europe, US.
• Integration with the broader Verisk data ecosystem (ISO statistical agent in the US).

Regulatory and rating-agency acceptance

Both AIR and RMS models are accepted inputs to Solvency II internal models, AM Best BCAR scoring, S&P insurer capital model and Moody’s rating analysis, provided the firm evidences model validation, view-of-risk overlay and a clear governance trail.

References

• Verisk Extreme Event Solutions documentation.
• PRA SS18/13.

Cross-references

• Catastrophe model
• RMS catastrophe model
• Vendor catastrophe model

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