Reinsurance specialist Guy Carpenter & Company, a subsidiary of Marsh & McLennan Companies, has entered into an exclusive multi-year agreement with technology and engineering company Synthetik to enhance its proprietary terrorism modelling product Sunstone.
Synthetik provides computational modelling for the global terrorism reinsurance market. The company specializes in explosive-blast and weapons-effects modelling, and works with both government bodies and the private sector to develop data-science applications, models and simulation code, Guy Carpenter said.
Synthetik is now incorporating its software into a terrorism insurance loss model. Its 3D blast-load calculation model has been applied to cityscape models in order to provide virtual representations of business districts around the globe.
The technology works with Sunstone, Guy Carpenter’s global terrorism portfolio risk model, allowing it to more accurately study a client’s most concentrated exposures. The greater precision allows for more accurate probable maximum losses than those generated by less-sophisticated techniques, Guy Carpenter said.
“Guy Carpenter’s exclusive relationship with Synthetik secures this unique capability that we have developed together over recent years and will accelerate the terrorism modelling work,” said Rob Bentley, president of global strategic advisory & analytics for Guy Carpenter. “Synthetik brings very exciting technology to the reinsurance market and much-needed sophistication to terrorism analytics. Their research-and-development work with government bodies brings credibility and validation to the tool and valuable insight from outside the reinsurance sector. We look forward to supporting our clients with this new capability.”
“We are delighted to enter this strategic alliance with Guy Carpenter, and for the opportunity to set the standard for terrorism analytics in the reinsurance market,” said Tim Brewer, co-founder of Synthetik. “This application of Synthetik’s modelling software will provide Guy Carpenter with the ability to more effectively quantify the losses associated with hypothetical terrorist attacks in terms of both property damage and building-occupant vulnerability. Synthetik’s technology, data and experience, particularly from the defense industry, allow Guy Carpenter to work with more sophisticated damage models for terrorist attack scenarios, and to capture the essential physics associated with explosive events in dense urban areas, in order to provide more accurate analyses to its clients.”
