Risk management software and service company Russell Group has said it is working with a number of reinsurers to build the aggregation tool which will enable reinsurers to access data on exposures to a zone or even rig level.

Managing Director Suki Basi explained: “The aim it to enable the reinsurers to work with the cedants to provide the data which will enable the reinsurers to properly and accurately calculate and therefore price the risk and the aggregation levels.

“It will enable the reinsurer to manage the aggregation far more accurately down to a zone or rig level. At present when the underwriters looks to go down to a zonal aggregation it can often mean that it will  break the limits leaving the reinsurer either having to commit more capital or rethink the risk.

“What we have been trying to do is bring in greater transparency between the reinsurer and the cedant in a way which will enable both to benefit. The reinsurer gets a better understanding of his aggregate exposure while the cedant gets a more accurate level and price of coverage for the risks he is seeking to reinsure.”