The LMA Exposure Management Working Group (EMWG) serves as a key technical forum for addressing challenges and developments related to catastrophe modelling and exposure management within the Lloyd’s market.
The group brings together market expertise to support robust risk evaluation, promote best practices and strengthen the market’s resilience to natural and man-made catastrophe exposures.
EMWG plays a critical role in guiding the market’s approach to exposure data, modelling accuracy and regulatory engagement on risk aggregation.
The Exposure Management Working Group (EMWG) supports the Lloyd’s market in strengthening catastrophe risk assessment and exposure management practices. Its key areas of focus include:
Collaborating with Lloyd’s on any proposals or changes that may impact exposure management, ensuring managing agents are represented in decision-making.
Monitoring market developments and initiatives that could influence catastrophe modelling and exposure practices.
Enhancing the role of catastrophe models in pricing, portfolio management, scenario testing and probabilistic analysis to support data-driven decision-making.
Promoting consistent approaches to data quality, benchmarking and standards adoption across the market, ensuring clarity and reliability in exposure data.
Acting as the primary liaison with model vendors to clarify technical terminology, reduce confusion and ensure alignment between practitioners and providers.
Evaluating the implications and trade-offs between using multiple models versus relying on a single vendor solution.
Exchanging insights on model-related challenges, including hardware requirements, parameter uncertainty and vendor communication practices.
Building a shared market understanding of model updates, serving as a reference point for evaluating and interpreting changes across modelling platforms.
Useful links
This guide aims to provide some background information as to what a cat model is, explain the terminology frequently used by modellers, and answer many frequently asked questions on cat models. This document is not intended to be a comprehensive guide to cat modelling or to answer all questions on this subject, but will hopefully act as a quick reference document for those not involved directly in cat modelling.
Notable projects
The Exposure Management Working Group (EMWG) coordinates a number of targeted sub-groups, each addressing specific challenges and advancing the market’s capability in exposure and catastrophe risk management: