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Developing Realistic Disaster Scenarios (RDS) for a global insurer

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A global insurer wanted to assess their exposure to a range of realistic disaster scenarios that
would have risk implications across multiple clusters of insured assets (contagion regions).
They were interested in testing exposure across their political risk & trade credit portfolio as
well as their political violence portfolio.

Using a mixture of qualitative scenario development and quantitative expertise to assess
resulting damage factors, we help our clients model how exposed they would be in the event
of low likelihood, high impact scenarios that would see significant losses in multiple
locations.

We combine tried-and-tested scenario methodologies with deep qualitative expertise and
country risk insight to identify scenario triggers, develop plausible narratives and assess
impact down to city and metropolitan level. Finally, we provide indicators that allow our
clients to monitor and receive early warning of changes to the likelihood of these scenarios.

Our approach helps insurers and reinsurers test their preparedness for political and
economic shocks, positioning them to better mitigate risk and navigate geopolitical
volatility.

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