Australian floods feature in a new catastrophe modelling tool that uses open-source software to cut costs and improve data access.

Oasis Loss Modelling Framework – a non-profit owned by 21 insurers, reinsurers and brokers including Lloyd’s – has developed a platform that allows companies to create models using the software as a starting point.

“Catastrophe models have matured significantly since they began following Hurricane Andrew in 1992, but the model marketplace has remained essentially the same,” Oasis Project Director Dickie Whitaker said.

“We estimate that in the medium term, using Oasis can save an international insurance or reinsurance company about 50% on their catastrophe modelling costs, which are typically several millions of [UK] pounds a year.”

Oasis says it aims to provide transparency and greater flexibility.

Lloyd’s says insurers, reinsurers and brokers have, until now, had to rely on a small number of proprietary software vendors for modelling.

Oasis says the framework operates as a set of “plug-and-play” components that any member can develop. Participants can invite others, such as reinsurers, to run their models and can develop models for sale or licensing.

Initial commercial models include flooding in Britain and Australia, earthquake models for the US, North Africa and the Middle East, the 18th-century Cascadia tsunami and Brazilian bushfire.

Trevor Maynard, Head of Lloyd’s Exposure Management and Insurance Team, says Oasis has started with perils and places that are not well covered by other proprietary models.

Oasis membership will cost £20,000 ($36,600) this year, but the cost is expected to fall as other revenue sources come on stream.