This event, held on the evening of 16 November 2006 in collaboration with Lloyd's of London, demonstrated how mathematical techniques used in modelling of systems described by very sparse data can be applied to model interdependent losses in insurance.

A common challenge faced by actuaries in life insurance, general insurance, pensions, investment and risk management, and by other risk management professionals, is in modelling and managing the risks arising from dependent behaviour between multiple assets or liabilities. This might be the risk of all asset values falling in value together, widespread claims inflation or of a catastrophic event impacting multiple lines of business.

In many areas, for example in communication system design, the underlying mathematical techniques to support decision making with limited data are now well developed and understood. A presentation will report on a collaboration between the KTN and Lloyd's that is demonstrating the potential for knowledge transfer to benefit the insurance sector.