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Catastrophe model diversity urged at ILS Bermuda Convergence 2026

Karen Clark said ILS deal flow is often concentrated on the main vendor model views, and more alternative model inputs should be reflected in offering documents and deal analysis.

Reported · Written up by our desk · Reinsurance

Karen Clark, CEO and co-founder of catastrophe risk modelling specialist Karen Clark & Company, urged the insurance-linked securities community and investors to ask for alternative catastrophe model views to be included in ILS deal flow, during a panel discussion at the ILS Bermuda Convergence 2026 conference, according to Artemis.

Clark said ILS deal flow is typically concentrated around risk views from the main vendor models, even as technology advances, next-generation models, artificial intelligence, and new data sources are increasingly adopted across insurance and reinsurance.

She added that, at KCC, the company has significant market penetration with primary insurers in the United States, but those insurers may need models that differ from the one they rely on for much of their internal analysis when evaluating catastrophe bonds or other ILS deals.

Clark argued that the industry would be better served by more models appearing in offering documents and in the ILS deal analysis process, in order to broaden how catastrophe risk is assessed.

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