On 2 May, the London Market Group held an event for actuarial students working in general insurance. Jo Lo and Alan Calderwere invited to present on catastrophe model blending. The presentation was an introduction to the issues discussed in the paper by Lo, Calder and Andrew Couper, Catastrophe Model Blending, Techniques and Governance, which was presented at GIRO last year.
Catastrophe models are used by many within the insurance market, with much reliance placed on their output. Lo and Calder discussed the sources of uncertainty in catastrophe models, before discussing the ways in which blending may reduce this uncertainty, and model governance. They ended with an example showing that blending models does not always produce a better answer.