Aon and a group of reinsurers including Renaissance Re, Scor, Hannover Re and Swiss Re say a new Open Exposure Data (OED) Standard for risk modelling of property reinsurance placements will reduce costs and improve efficiencies. 

The OED Standard is a non-commercial venture designed to test and support the idea that open data standards in risk modelling are more effective than proprietary and commercial standards in improving efficiency, reducing costs and increasing transparency and consumer choice, Aon says. 

The broker says the standard will also lower entry barriers for model developers, including commercial vendors, third-party data providers and academia and other research institutions. 

Initial testing on reinsurance placement data for Japan, Australia and China has proved successful as the initiative broadens its area of focus, it says. 

“Globally shared data formats are an important step to overcome barriers for consistency, processing efficiency and a transparent cat risk dialogue,” Swiss Re Head of Cat Perils, Cyber and Geo Martin Bertogg said. 

“Our industry has an urgent need to take out non-value adding friction from its production chain. By supporting OED, we take an important step to facilitate more insurance risk transfer.” 

Benefits include improved data transfer between models and systems and better access to credible data for underserved and disadvantaged communities, while Aon says OED also supports digitalisation of the insurance industry and improved risk perspective through less reliance on any particular model developer.