To constantly target and monitor emerging social and environmental risks we formally established our NatCAT Competence Center (NCCC). From the NCCC the Group risk exposure and its changes, accumulations and yearly expected losses are assessed as well as the reinsurance protection needed to shelter the Group against major natural catastrophes. For these purposes, cutting edge modelling techniques based on stochastic models which contain hundreds of thousands of simulated events for hail, windstorm, flood and earthquake are used. These models are from external vendors or in-house models developed within the NCCC R&D team and their results are the basis of the natural catastrophe group-wide risk management.
Additionally, stress scenarios -that is, very exceptional large events- to test the robustness of our underwriting and reinsurance coverage are yearly performed with these models. The hazard from the models can be visualised in maps which are incorporated in the Corporate Business Navigator (CBN), an underwriting and Risk assessment instrument used by the Group Underwriters and Risk Engineers. Comprehensive reports are yearly provided by the NCCC to each business unit of the Group.