Catastrophe modeller AIR Worldwide is working with Bermuda-based RenaissanceRe to develop the industry’s first probabilistic model for extreme liability events.

AIR will model portfolio-specific casualty losses based on its exposure management application Arium.

Chief Research Officer Jay Guin says AIR is “developing the industry’s most comprehensive model of liability risk to help companies understand the complex interconnections in their portfolios, resulting in a comprehensive assessment of potential future losses”.

He says the model “provides a forward-looking view of risk and will enable insurers and reinsurers to capture the full distribution of the frequency and severity of casualty catastrophes”.