RMS catastrophe model

Category: Pricing & rating · Reviewed by Tim Roche, Director · PI & Commercial · Last reviewed

RMS catastrophe model

Moody’s RMS (formerly Risk Management Solutions) is one of the two largest commercial providers of catastrophe modelling software. Founded at Stanford University in 1989, it was acquired by Moody’s Corporation in 2021 and now sits within Moody’s RMS division.

Key product lines

• RiskLink / Risk Modeler — flagship platform for global natural catastrophe modelling.
• Industry Exposure Database — industry-level exposure benchmarks.
• HD models — high-definition models (e.g. US hurricane HD) at higher event-set granularity.
• Climate Change models — forward-looking climate-conditioned versions of standard perils.
• Cyber Solutions — including the Cyber Accumulation Management System.
• EQECAT models (acquired 2013).

Perils covered

Wind storm, severe convective storm, earthquake, flood, wildfire, terrorism, pandemic, cyber. Region coverage spans North America, Europe, Asia-Pacific, Latin America, Middle East.

Use cases

• Insurer and reinsurer per-risk pricing.
• Treaty pricing for property catastrophe layers.
• Capital allocation and Solvency II internal model calibration.
• Rating-agency capital adequacy assessment input.
• Cat bond / ILS structuring.

References

• Moody’s RMS public documentation.
• PRA SS18/13.

Cross-references

• Catastrophe model
• AIR catastrophe model
• Vendor catastrophe model

---

Maintained by Apex Insurance Brokers. FCA FRN 724952. Companies House 07014570.