Risk Prediction Initiative - Connecting Science and (Re)Insurance

RPI promotes productive dialogue between scientists and (re)insurers involved in catastrophe risk by refocusing scientific research towards answering the industry’s questions.

Overview of Products
RPI funds academic research relevant to the insurance and (re)insurance industry and assists in translating this research into usable and actionable results for our member companies. Our experienced management team combines expert knowledge of climate-related natural disasters with a background in risk management. We help scientists refocus their interests on needs and time-scales relevant to the (re)insurance industry in addition to stimulating and supporting high-level research on natural hazards such as hurricanes, typhoons and tornados.

Among other available services, members of RPI receive in-house presentations focused on addressing business relevant information on the science of extreme events; they have priority access to the "crowd forecast" created through our seasonal forecast competition; and through our CEO events they have access to scientists and prestigious academic institutions allowing them to influence future research.

What Makes us Unique
Based in Bermuda, the risk capital of the world, RPI creates effective and efficient dialogue between scientists and (re)insurers involved in catastrophe risk. We offer our expert view of relevant emergent risks and continually promote the (re)insurance industry’s interests within the scientific and engineering communities.

We are located within the Bermuda Institute of Ocean Science and as a result we have long standing relationships with many leading scientists, allowing our members direct access to the scientific community. We offer our members unique access to scientific, engineering and economic knowledge aimed at answering business relevant questions.

We actively help scientists understand which questions the industry is asking and sponsor research targeted at answering those questions. Our support of industry defined research projects brings the scientific and business communities in closer alignment, helping science to educate (re)insurance underwriting and investment activities.

We have an established track record of success including the development of paleotempestology; stimulating the development of seasonal forecasts for hurricane landfall (as opposed to basin-wide activity); and initiating the creation of new databases such as HURSAT and the extended best-track data that are used to refine hazard catalogs. In addition we supported the research that quantified clustering of European wind storms and promoted interest in the importance of extra-tropical transitions for hurricanes. Much of the work RPI supports is incorporated into hazard catalogs and used by our members in the hurricane cat models they license from cat model vendors.

The Goal of RPI
Our goal is to strengthen our position as a center of excellence in (re)insurance relevant research in Bermuda. This involves expanding our academic links, international network of world-class scientists, and industry members and associations.

History
The Risk Prediction Initiative (RPI) was founded in 1995 by a group of local Bermudian insurers and reinsurers and the Bermuda Institute of Ocean Science (BIOS), a renowned ocean science institute founded in 1903. BIOS’s background in ocean research enables RPI to maintain a well-established network of climate scientists who pioneered research such as paleotempestology and ENSO influences on hurricane landfall. Over the past 17 years the catastrophe (re)insurance industry has changed greatly and we are in a unique position to align scientific activity with the short and long term business requirements of our members.