As a part of our Risks of 2013 coverage, we asked some industry experts their thoughts on emerging issues. This was the response from Ming Lee is president and CEO of the risk modeling firm AIR Worldwide.
Ming Lee: Catastrophe modeling can provide a clear picture of the key drivers of risk, including which perils, regions and facilities have the greatest marginal impact on losses. Such information can help businesses fine tune growth strategies while managing loss potential. It can also help determine which areas within the organization are already overexposed to catastrophe losses.
As catastrophe modeling has become more widely accessible — whether in-house, as a broker-offered service or directly through modelers — risk managers have continued to embrace the technology. And today, those that have are using it to further their company’s competitive advantage to make scientifically sound decisions.