The overhaul of Lloyd's realistic disaster scenarios: 2003 update

Document description

This paper has been produced by the members of the Loss Modelling Team within the Risk Management Division of Lloyd’s, which is a new team with responsibility for improving the quantification of risk within the Franchise (i.e. within both the Franchisor, the Lloyd’s Corporation, and within Franchisees, Lloyd’s Managing Agents).

We provide an overview of Lloyd’s Realistic Disaster Scenarios and give an update on the RDS Overhaul that is to be completed by April 2004. We have also commented on the role that catastrophe risk modelling can play in managing risk and improving the market’s performance, and have expressed our own opinions on the value and problems that such models might deliver. The views expressed in this paper are our own and are not necessarily shared by our employer.