The Risk Explorer Tool

The Oasis Risk Explorer is an educational tool developed by the Insurance Development Forum in partnership with Oasis and Maximum Information.

Access the Risk Explorer at https://riskexplorer-oasislmf.com.

The Risk Explorer is designed to help people understand some of the data, processes, and concepts of catastrophe risk modelling with a focus on designing parametric insurance. The tool has been built by a team with extensive experience of catastrophe modelling and insurance pricing.

The step-by-step guided workflow contains options to customise inputs, to help people who are new to this topic learn the effects of different data choices and assumptions on estimated parametric payouts. For example, users can see the effect of using only historical cyclone track data compared with a statistical simulation approach.

This is a free and open-source tool, available under a BSD-3-Clause license. The code is available on the OasisLMF RiskExplorer GitHub repository.

The tool provides data and workflows for three hazards: tropical cyclone and drought weather index (both with global coverage), and earthquake (selected locations).

The following sections of this user guide provide more general information, while the hazard-specific sections provide detailed methodology specific to those hazards.

Contents:

• Introduction
  • What is the Oasis Risk Explorer?
  • What regions and perils can the tool model?
  • Tropical Cyclone
  • Drought Weather Index
  • Earthquake
  • Next steps
• What is parametric insurance?
  • Examples
  • Selected additional resources
• How should this model be used?
  • Step 1: Familiarise yourself with the purpose of each tab, and try to produce outputs (any outputs!).
  • Step 2: Experiment with changing inputs to see the impact on expected payout and other outputs.
  • Step 3: Speculative cover design and loss modelling.
• Tropical Cyclone
  • Tropical Cyclone - Navigating Through the Tool - User Instructions
    • 0. Introduction
    • 1. Hazard
    • 2. Exposure
    • 3. Vulnerability
    • 4. Simulation
    • 5. Event Analysis
    • 6. Loss Analysis
  • Tropical Cyclone - How does the Simulation Methodology Work?
    • Basic Description – IBTrACS Hazard Data
    • Detailed Steps– IBTrACS Hazard Data
    • Basic Description – Stochastic Hazard Data
    • Detailed Description – Stochastic Hazard Data
  • Tropical Cyclone - Assumptions and Limitations – IBTrACS Hazard Data
    • Assumptions and Limitations - IBTrACS
    • Assumptions and Limitations – Stochastic Sets
• Drought Weather Index
  • Weather Index - Navigating through the tool - User Instructions
    • 0. Introduction
    • 1. Hazard
    • 2. Exposure
    • 3. Vulnerability
    • 4. Simulation
    • 5. Event Analysis
    • 6. Payouts
  • Weather Index - How does the simulation methodology Work?
    • Basic Description – Weather Index with CHIRPS Data
    • Detailed Steps – Weather Index with CHIRPS Data
    • Seasonality
  • Weather index - Assumptions and Limitations
• Earthquake
  • Earthquake - Navigating Through the Tool - User Instructions
    • 0. Introduction
    • 1. Hazard
    • 2. Exposure
    • 3. Vulnerability
    • 4. Simulation
    • 5. Event Analysis
    • 6. Loss Analysis
  • Earthquake - How does the simulation methodology work?
  • Earthquake - Assumptions and Limitations
• Glossary
  • Asset
  • Asset Value
  • Basin (Tropical Cyclone Basin)
  • CHIRPS data
  • Convergence
  • Damage
  • Event
  • Event Set
  • Experience/History
  • Exposure
  • Exposure Loss Radius/Area
  • Expected Loss
  • Frequency
  • Hazard
  • Historical Loss
  • IBTrACS
  • Intensity Measure
  • Intensity Values
  • Interpolation
  • Insurance Development Forum
  • Latitude-Longitude
  • Loss
  • Meteorological Agency
  • Modified Mercalli Intensity Scale
  • Oasis
  • Payout
  • Peak Ground Acceleration
  • Percentage of Asset Value
  • Percentile
  • Peril
  • Reinstatement
  • Return Period
  • RMW (Radius of Maximum Wind Speeds)
  • Simulation
  • Simulation-Year
  • Saffir-Simpson Category
  • Simulated Loss Rank
  • Standard Deviation
  • Simulation Loss
  • Stochastic
  • Trigger Measure
  • Unweighted Simulation Loss
  • Vulnerability
  • Weighting/Weighting Function
  • Weighted Simulation Loss
• License