Equinix, Inc., the global interconnection and data center company, has collaborated with Lloyd's and the Lloyd's Market Association (LMA) to enhance a catastrophe risk modeling platform that could change the face of the insurance industry.
The Oasis Loss Modeling Framework is potentially one of the most radical shake-ups in the catastrophe modeling sector in years. Hosted in Equinix's interconnected insurance ecosystem, it gives insurers in the multi-billion dollar catastrophe insurance market access to a wider range of model providers from around the world.
The latest release of the framework, just announced, has now made it fully open source - encouraging greater collaboration and enabling users to share data and information to further improve their models.
Collaboration has been the focus of the project from the start. The creation of the framework required the involvement of players from across the industry, with Equinix, Lloyd's and the LMA gathering 10 managing agents together to implement and test the system within Equinix's London International Business ExchangeTM (IBX®) data center (LD5).
This unprecedented level of collaboration, also involving Equinix partners Cinnober and Datapipe, enables insurance companies to enhance their modeling capability - modeling anything from wild fires in Australia to hurricanes in the Americas - to ultimately improve the terms they can offer to their clients.
Equinix's global interconnection platform simplifies the sharing of data between multiple stakeholders in global insurance markets - from life to property and casualty. Market participants directly connect to one another, enhancing the performance of risk modeling systems and the secure consumption of cloud technologies, while lowering IT, bandwidth and network connectivity costs.
The Oasis framework was developed over five years at a cost of $4 million. It is expected to lead to significant savings in modeling in the coming years.
Highlights / Key Facts
Trevor Maynard, head of Exposure Management and Reinsurance, Lloyd's:
"The Oasis framework is groundbreaking in itself but really it's the nature of the collaboration that sets a new precedent. Equinix, Lloyd's and others have accelerated the creation of a market place for catastrophe models giving choice and the potential for deeper analysis to insurers."
Ken Curtis, LMA director, Finance & Risk:
"The LMA fully supports these initiatives which will help to lead the way in catastrophe modeling for the market and should ultimately lead to cost savings for members."
Dickie Whitaker, CEO, Oasis:
"Leaders in the catastrophe modeling field are realizing the value of the new, extensible, scalable Oasis Platform and deploying high quality models. This opportunity realizes a new range of cost effective transparent models coming to market."
James Maudslay, global head of Insurance, Equinix:
"Equinix's ability to interconnect businesses and partners has led to the launch of something that has the power to change how an entire industry works. As our business ecosystems continue to grow and more collaborations like this are formed across industry sectors, we will see more and more of this type of disruptive innovation - it's a very exciting time for Equinix and our customers."