ARA Case Study

With Nasdaq's robust, secure and cost-effective catastrophe modelling service, ARA make it easier and more affordable for market participants to evaluate, onboard and use their models.

Business Challenge

ARA’s US hurricane model, HurLoss, provides unparalleled insight into the potential impacts of hurricanes. The wind hazard model in HurLoss is the basis for design wind loads in all hurricane-prone regions of the US. Its physics-based approach to assessing wind vulnerability accurately models the combined effects of known and unknown building attributes. However, despite their unique capabilities and reputation for excellence, it has been a challenge for ARA, as a specialist in US hurricane hazards, to gain traction in the global insurance industry. This has primarily been due to the barriers which prevent re/insurers from adopting alternative catastrophe models, such as the traditional requirement to host separate platforms for separate models.

Solution

ARA needed a solution which made it easier and more affordable for re/insurers to evaluate, onboard and use their models. Nasdaq delivers that solution through its robust, secure and cost-effective catastrophe risk modelling platform.

Re/insurers can now easily access ARA’s model through a single standardized user-interface and financial model without any hardware or software installation. This helps to remove the barriers that used to prevent insurers from readily adopting new models and provides re/insurers with access to a wider range of models.

By taking advantage of Nasdaq’s fully hosted and managed service, ARA have been able to save valuable time, allowing them to focus on effective model delivery and strategic priorities, such as core hazard and vulnerability modelling development.

ARA have always been strong supporters of the Oasis Loss Modelling Framework and were involved in the initial Oasis Solutions Project with Lloyd’s of London in 2015. Through its modern front-end and hosted service, Nasdaq has brought Oasis into a production-ready environment. HurLoss was one of the first two models deployed on the platform in January 2017.

While ARA retains its own platform with a basic set of financial modelling options, ARA identified that the Nasdaq Risk Modelling service offered a way to improve market access to new models, including the ability for firms to trial ARA’s model prior to purchase.