The CatVest EnergyRisk Model is a suite of modelling functions which allow for accurate estimation, analysis, calculation and indexing of catastrophic losses (including those from physical damages, operators extra expenses, business interruption, incident response costs, third party losses and natural resource damages worldwide) in the offshore and onshore oil and gas energy facilities around the world.

The unique algorithms within the patent pending CatVest EnergyRisk Model are tailored specifically for the purposes of creating industry loss indices for the energy sector. These energy industry loss indices can be used to assist with the design, structuring and triggering of insurance linked securities or industry loss warranty derivatives.

CatVest EnergyRisk Industry Loss Index

The indices created using the CatVest EnergyRisk Model are used as an industry loss index which proxies industry wide insured loss due to catastrophic losses in offshore or onshore oil and gas energy facilities operating within specified energy producing regions globally (e.g., North Sea, Gulf of Mexico, Red Sea, Arabian Gulf, Southeast Asia, etc.). The resulting index provides a framework for efficient structuring of insurance linked securities and ILW’s.

Motivating CatVest EnergyRisk Industry Loss Index loss modeling is an acknowledgement that investors want simple, efficient structures, which are objective, settle quickly, and may be tradable in the secondary markets. Issuers, on the other hand, want to minimize basis risk.

The CatVest EnergyRisk Industry Loss Index is a weighted industry loss index based on probabilistic (“stochastic”) modeling of magnitude and frequency of energy losses experienced by the O&G industry within the world’s major oil and gas producing regions (e.g., North Sea, Gulf of Mexico, Red Sea, Arabian Gulf, Southeast Asia, etc.).

Contact CatVest Petroleum Services for more details about the CatVest EnergyRisk model and Industry Loss Index.