XPRIMM: Synthetik has developed a distinctive approach to modeling both man-made and natural catastrophe risks, using behavioral analysis and advanced data modeling. What are the main advantages of this approach compared with traditional catastrophe models, and how does it help insurers and reinsurers make better underwriting decisions?

Matt Harris: Traditional cat models rely mostly on historical loss data. That works reasonably well for frequent perils, but it breaks down for events that are rare, changing quickly or driven by people. Synthetik starts from the physics: for example, how a blast wave actually moves through a real cityscape and how individual buildings respond to it. We then add analysis of how threats and crowds actually behave. The result is a view of risk at the level of the individual location, not a broad regional average. Underwriters can see why a risk is exposed, not just that it is. That supports sharper pricing, better accumulation management and more confidence when setting terms for risks that have little loss history.

XPRIMM: As Global Head of Partnerships and Distribution, what are your main priorities in developing Synthetik's distribution network? What types of partnerships do you consider most valuable for supporting the company's growth?

M.H.: Our priority is to put our models where risk decisions are made, through partners who are already trusted by insurers and reinsurers. Our partnership with Marsh Re on blast modelling, and the SRCC modelling partnership we recently announced with Howden Re, show how this works: we bring the science, and our partners bring the client relationships and analytical expertise. Alongside our broker partnerships, we work directly with carriers, reinsurers, MGAs and specialty underwriters, and with platforms that can embed our analytics in existing workflows. The partnerships we value most are those that extend our reach while keeping our models transparent and well understood by the people using them.

XPRIMM: Which geographical markets offer the greatest opportunities for Synthetik's future development? How do you assess the potential of Central and Eastern Europe and other emerging insurance markets?

M.H.: London, the specialty market and the major reinsurance hubs remain central for us, because that's where political violence, terrorism and complex property risks are concentrated and placed. We also see real potential in growing markets. Central and Eastern Europe stands out: insurance penetration is rising, the region is acutely aware of geopolitical risk after recent years, and its natural catastrophe exposure is increasing. Emerging markets often have little loss history, and that's exactly where physics-based modelling adds most value, because it doesn't depend on decades of claims data to produce a credible view of risk.

XPRIMM: Recent geopolitical tensions, social unrest, and increasingly severe natural catastrophes have brought new challenges for risk assessment. Where do you see the most significant gaps in insurers' current modeling capabilities, and how can Synthetik's solutions help address them?

M.H.: The biggest gap is in perils that are driven by people or are changing fast. Strikes, riots and civil commotion (SRCC), political violence and terrorism have historically been underwritten largely on judgement and scenario analysis, with limited quantitative support. Rising unrest worldwide has exposed how hard these accumulations are to measure. On the natural catastrophe side, a changing climate means the past is a less reliable guide to the future. Synthetik addresses both gaps with models built on engineering and behavioral science, not just on past losses. That lets clients test realistic scenarios against their actual portfolios and manage aggregation with far more precision.

XPRIMM: Looking ahead to 2027 and beyond, what are Synthetik's main strategic objectives? What do you consider the greatest opportunities and challenges for the company's continued international development?

M.H.: Our objective is to make Synthetik's analytics a standard part of how the market prices and manages complex man-made and natural catastrophe risk. That means deepening our partnerships, expanding our range of perils and making our tools easier to access through partners' platforms. The opportunity is significant: demand for credible political violence and SRCC analytics has never been higher, and regulators and capital providers increasingly expect quantified views of these risks. The main challenge is changing long-established habits, since moving a market from judgement-based to model-informed decisions takes time and education.

That's why we invest so heavily in partnerships with trusted market participants.

XPRIMM: Our activity is strongly related to the CEE and Eurasian insurance markets. As such, it feels natural to ask you if your company has a specific approach for assessing and/or accessing the potential of these markets. Are you present or developing partnerships in the region?

M.H.: We see Central and Eastern Europe as a region with strong long-term potential and a particularly clear need for better geopolitical and catastrophe risk analytics. Our approach is partner-led: we work with brokers, reinsurers and carriers who already have deep regional relationships, so local insurers can access our modelling through advisers they already trust. We are in active discussions with partners in the region. Over time we'd like to support regional carriers both on reinsurance placements and on understanding their own accumulations, particularly for political violence and natural catastrophe risks.

Interview conducted by Daniela Ghetu