Specialty InsurerA new global specialty insurer expected several high-volume contracts to renew, even as it was rapidly growing its North America business. Its CAT modeling unit sought to enhance modeling capacity for a high volume of renewals, as well as for rapidly expanding business lines. Since renewal work must be completed on rigid schedules, time was of the essence.
The insurer’s CAT modeling requirements included:
OUR APPROACHProcess automation was required at multiple levels of the modeling lifecycle, especially in financial modeling. To complement the insurer’s own CAT modeling resources, we brought in members of the Xceedance CAT modeling, technology, and client-management teams to reduce modeling time and effort.
We incorporated data warehousing technologies for better quality control and data governance — and increased the frequency and accuracy of model runs. The results of those models allowed the insurer to better estimate its loss-reserving requirements and optimize its business portfolio.
Key data characteristics included:
- Information about on-site locations and geocoding data at multiple levels (e.g., street address, postal code, county/CRESTA zone)
- Information on physical characteristics of property exposures (e.g., construction, occupation, occupancy, year built, number of stories, number of employees)
- Information on the financial terms of the insurance coverage (e.g., coverage value, limits, deductibles)
SUCCESS METRICSFor the insurer to meaningfully assess the outcomes of the project, we applied these evaluative indicators to the project:
Identification of redundant steps
Initiation of the modeling tool in Excel at little to no cost
Elimination of third-party platforms
Increase of capacity without significantly raising operational costs
Additional capacity for CAT modeling teams, emphasizing business analysis instead of processing tasks, especially during critical renewal periods
Knowledge augmentation and transfer in a single month
Development of CAT modeling tools that can be used by any insurer with similar work types
Scalability of the tools to more functionally capable platforms
VOICE OF THE CUSTOMER
This must be a record! Keeping up with the peak season volume without the Xceedance CAT team’s innovative approach would have been impossible. Kudos for making this happen on such short notice.
Head of Catastrophe and Engineering Analytics, Global Commercial and Specialty Insurer
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