Oasis LMF has the following objectives:
- Transparency: To encourage openness and transparency in model building, use and validation utilising a variety of methods including peer review, published papers, useful information on model sensitivity, uncertainty and optimised hardware and software.
- To build a community that will increase the supply of catastrophe models and information: By providing the simulation kernel and financial module and with the development of cat model standards we will allow a broad range of academic and specialist hazard organisations to provide their intellectual capital direct to the desktop of the insurance industry.
- To stimulate innovation, software design and hardware efficiency: By creating an open community around the centralised knowledge of the Insurance sector we allow others without that specialist knowledge to innovate in our space. This will include software and hardware specialist firms and advisors and others.
- To create a viable environment allowing for the commercialisation of tools, models and consultancy: By supporting a commercial framework that will deliver tools, models and information we will provide a sustainable and vibrant marketplace for our business.
In delivering these goals we will enable users to achieve a range of practical solutions that will include:
- Enabling model users to undertake full uncertainty calculations (to determine the “spread” of price or capital) within one model combination.
- Enabling model users to test a variety of models and so illustrate the sensitivity of results to model choice.
- Allowing insurers to demonstrate to regulators a detailed understanding of the models and their inherent uncertainties.
- Supporting the creation of alternative models for existing perils and new models for so-called unmodelled perils and new territories.
- Achieving materially better run times, so reducing the need to simplify assumptions.
- Allowing the damageability function to be calibrated against actual insurance loss data.
- Separating “results viewing” from “results creation”, allowing new companies and academia to offer modules and bring their IP to market.
- Creating a marketplace for models, data and services that will lower the barrier to entry, so that more parties can develop modules and users can obtain relevant information about catastrophic risk.