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🌀 '''Moody's RMS''' is one of the world's leading [[Definition:Catastrophe model | catastrophe modeling]] firms, providing risk analytics and simulation platforms that [[Definition:Insurance carrier | insurers]], [[Definition:Reinsurer | reinsurers]], [[Definition:Broker | brokers]], and [[Definition:Institutional investor | investors]] use to quantify potential losses from natural and man-made catastrophes. Formerly known as Risk Management Solutions (RMS) before its acquisition by Moody's Corporation in 2021, the company has been central to the development of probabilistic [[Definition:Catastrophe model | catastrophe modeling]] since the discipline's emergence in the late 1980s. Its models cover perils including [[Definition:Hurricane | hurricane]], [[Definition:Earthquake | earthquake]], [[Definition:Flood insurance | flood]], wildfire, [[Definition:Cyber risk | cyber risk]], and [[Definition:Terrorism risk | terrorism]], among others.

🖥️ At the core of Moody's RMS is its Intelligent Risk Platform, a cloud-native analytics environment that enables users to run high-resolution simulations across millions of possible event scenarios. Insurers feed their [[Definition:Exposure data | exposure data]] — property locations, construction types, policy terms — into the platform, and the models generate [[Definition:Exceedance probability curve | exceedance probability curves]], [[Definition:Average annual loss (AAL) | average annual loss]] estimates, and [[Definition:Probable maximum loss (PML) | probable maximum loss]] figures. These outputs inform decisions about [[Definition:Underwriting | underwriting]] appetite, [[Definition:Reinsurance | reinsurance]] purchasing, [[Definition:Capital management | capital allocation]], and [[Definition:Insurance-linked security (ILS) | ILS]] structuring. The platform's open architecture supports integration with third-party data and proprietary models, allowing organizations to customize analyses to their specific portfolios.

📈 The influence of Moody's RMS extends far beyond individual company risk assessment. [[Definition:Rating agency | Rating agencies]], regulators, and the [[Definition:Insurance-linked security (ILS) | ILS]] market all reference its model outputs as benchmarks when evaluating insurer strength, setting [[Definition:Solvency | solvency]] requirements, and pricing [[Definition:Catastrophe bond | catastrophe bonds]] — particularly those using [[Definition:Modeled loss trigger | modeled loss triggers]]. Because of this pervasive reliance, any significant update to an RMS model — such as a revised view of U.S. hurricane frequency or a new [[Definition:Climate risk | climate change]] adjustment — can ripple through the market, affecting [[Definition:Reinsurance pricing | reinsurance pricing]], capacity availability, and investment flows. This concentration of influence has also fueled industry discussion about [[Definition:Model governance | model governance]], vendor diversification, and the importance of not treating any single model's output as definitive truth.

'''Related concepts'''
{{Div col|colwidth=20em}}
* [[Definition:Catastrophe model]]
* [[Definition:Probable maximum loss (PML)]]
* [[Definition:Average annual loss (AAL)]]
* [[Definition:Insurance-linked security (ILS)]]
* [[Definition:Exposure data]]
* [[Definition:Verisk]]
{{Div col end}}

Definition:Moody's RMS - Revision history

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