AON announced that its Impact Forecasting team is leveraging the Oasis Loss Modelling Framework (Oasis LMF) to deliver ERN’s Latin America catastrophe models to clients.
Latin America is becoming a key focus for (re)insurers seeking portfolio diversification. While the region faces climate risks, its catastrophe profile, with more earthquakes than hurricanes, offers a unique balance for global portfolios.
Oasis LMF supports an expanded suite of Latin America catastrophe models from ERN (Evaluación de Riesgos Naturales) within Impact Forecasting’s ELEMENTS platform, emphasizing Aon’s support for open-source initiatives that aim to democratize catastrophe modelling and broaden choice beyond the traditional vendor landscape. This adds to Impact Forecasting models already in Oasis LMF including the Europe windstorm, Europe SCS, Canada flood, Europe flood, Thailand flood and Manhattan blast model.
As climate-driven volatility and regulatory demands intensify, insurers face pressure to ensure their risk view is robust and adaptable. By supporting Oasis, Impact Forecasting empowers (re)insurers to take greater ownership of their catastrophe risk models, leveraging model customisability to gain new insights and make more informed risk and capital decisions. This approach recognizes the unique characteristics of (re)insurers’ exposures and allows for more accurate analysis and risk pricing.
In its work with clients, Impact Forecasting serves both as a model provider – supporting industry initiatives such as Open Data Standards – and as a technology provider. Through the team’s ELEMENTS platform, users can access not only Impact Forecasting models but also integrate third-party vendor models into the workflow. This collaborative approach offers clients the flexibility to access, benchmark and blend a wide range of models, empowering them with a holistic view of risk.
Adam Podlaha, global head of Aon’s Impact Forecasting, commented: “Aon recognises that clients need to access catastrophe data and models through their preferred systems and platform. With our collaboration with Oasis LMF and positive conversations with software and model vendors, we continue to seek the best solutions and expand the range of models we offer to help quantify catastrophe risk for our clients. Our approach reflects Aon’s ongoing commitment to innovation, transparency and client empowerment in the evolving world of catastrophe risk management.”
Paula Ferreira, Latin America CEO, Reinsurance Solutions at Aon, added: “Emerging risks and areas of under-insurance are driving profitable growth opportunities for our clients in Latin America, but to seize these opportunities (re)insurers need a clear understanding of their potential exposures. In this regard, these additional models from ERN are enabling us to deliver increasingly accurate assessments, tailored solutions and exceptional service to clients, ultimately shaping better business decisions.”
Impact Forecasting enables insurers to tailor catastrophe models to their unique risk, using their own claims and exposure data to refine damage and vulnerability functions based on historical loss experience. For example, the U.S. severe convective storm (SCS) model – which is one of the most up-to-date SCS models available – supports the creation of custom vulnerability curves to better reflect individual portfolios. In addition, users can access model hazard and event data, offering greater transparency and insight into model components and helping clients build trust in their models.
Beyond insurance, Aon’s commitment to open modelling extends to disaster risk reduction and risk financing for public sector and corporate clients. This includes being a founding partner of the Insurance Development Forum, where Impact Forecasting has contributed free-to-use scenarios in Oasis LMF and provided event-sets for typhoons and earthquakes for the Oasis Risk Explorer. The team has also collaborated with development banks on a range of projects including developing multi-peril models for Vietnam and Nepal.
For more information and insights into Impact Forecasting’s catastrophe risk management products, please click here: https://www.aon.com/en/capabilities/reinsurance/catastrophe-model-insight
