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Revolutionizing Catastrophe Risk Modeling: A Case Study of Simplitium and Equinix
Technology Category
- Platform as a Service (PaaS) - Application Development Platforms
- Sensors - Temperature Sensors
Applicable Industries
- Finance & Insurance
- Marine & Shipping
Use Cases
- Tamper Detection
- Usage-Based Insurance
Services
- Cloud Planning, Design & Implementation Services
- System Integration
The Challenge
Simplitium, a UK company delivering ModEx, a catastrophe risk modeling platform for the (re)insurance industry, faced a significant challenge. The industry had been relying on outdated technology for the better part of three decades, using resource-heavy, legacy in-house hosting systems. These systems were used to analyze risks and potential damage of events such as natural catastrophes, helping (re)insurers calculate the financial implications to ensure they have enough capital to pay the claims and remain solvent. However, as cloud and hosted environments developed significantly, these legacy systems became increasingly inefficient and costly. Simplitium needed a reliable colocation partner with a strong presence in the insurance sector to help grow its customer base. They required a solution that would offer clients faster roll outs, lower costs, and zero downtime.
The Customer
ModEx
About The Customer
ModEx, delivered by Simplitium, is a catastrophe risk modeling platform for the (re)insurance industry. It operates on the Oasis Loss Modeling Framework (LMF) and provides an independent and transparent platform that encourages model development. Simplitium, formerly known as Boat Services, is a UK company wholly owned by Cinnober, a financial technology specialist. The company's clients are primarily (re)insurance companies that rely on mathematical models to analyze risks and the potential damage of events, such as natural catastrophes, to calculate the financial implications and ensure they have enough capital to pay the claims and remain solvent.
The Solution
Simplitium partnered with Equinix, a global interconnection and data center company, to host the ModEx platform at the Equinix LD5 International Business Exchange™ (IBX®) data center in London. This partnership allowed Simplitium to leverage Equinix's reliable, agile, and global data center environment to deliver a flexible, scalable, and secure shared catastrophe risk modeling service via a hosted and fully managed environment. This new approach enabled firms to improve their internal risk assessment processes and provided a cost-effective and reliable way to meet their catastrophe risk modeling requirements. The shared service approach in a hosted environment with a presence near the industry’s London hub and the global scale to handle potential future growth was a more effective solution than the legacy in-house hosting systems.
Operational Impact
Quantitative Benefit
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