Verisk, a data analytics and technology provider for the insurance industry, has acquired Simplitium, a subsidiary of Nasdaq, for an undisclosed sum.
Simplitium operates Nasdaq Risk Modelling for Catastrophes (NRMC), a software-as-a-service (SaaS) platform designed to support an open ecosystem in which specialised model partners offer their models, hazard data and analytics.
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This ecosystem aims to address the global insurance protection gap.
As part of the acquisition, Verisk clients will gain access to more than 300 third-party models, providing diverse and specialised insights into global risk.
Verisk product management senior vice-president Gayatri Natarajan said: “Verisk risk modelling powers mitigation strategies and disaster financing to narrow the insurance protection gap, reducing uncertainty and empowering people to protect what matters most – their families, homes and livelihoods.
“Access to more views of risk, especially covering niche areas of risk, strengthens our clients’ ability to make decisions that will deliver resiliency to our communities and businesses.”
NRMC, which operates using the OASIS Loss Modelling Framework – recognised as the industry standard for open-source catastrophe risk modelling – will be delivered as a cloud-based service.
Verisk said the integration of NRMC into its portfolio will allow clients to evaluate various views of risk, assess potential losses through different modelling perspectives and apply models that best suit their business needs.
The platform is built on open standards, enabling standardised and efficient data exchange, and supporting reinsurers in refining their catastrophe risk strategies with greater precision, the company added.
NRMC will become part of Verisk’s Extreme Event Solutions division, which offers advanced catastrophe risk modelling, global loss indices and analytics to the insurance industry.
Verisk added that the acquisition is not expected to have a material impact on its financial results.
Nasdaq marketplace technology head Magnus Haglind stated: “We are pleased that NRMC will become part of an organisation with a scaled presence in catastrophe risk modelling and we look forward to NRMC’s continued success under Verisk’s ownership.”
In January this year, Verisk sought a review of its wildfire catastrophe model by the California Department of Insurance, reportedly the first modeller to initiate new regulations in California.
