Schroders Capital’s insurance-linked securities (ILS) division has partnered with ETH Zurich, a public university in Zurich, Switzerland, to launch an industry-first independent research project that’s designed to enhance hurricane risk modelling for the ILS sector.
According to the announcement, this initiative, which is supported by the Swiss Innovation Agency, Innosuisse, will integrate state-of-the-art climate science into catastrophe risk assessment.
A significant challenge facing the ILS market regarding hurricane risk modeling is that these models remain predominantly based on historical observational data, rendering them static.
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