Natural Perils Pricing
Determining the correct premium loading for natural perils is difficult due to the infrequent nature of events and the limited available data.
Weather Risk (excluding Flood)
The cost of weather related claims can be a significant component of the technical risk premium, particularly for property related covers. Finity has extensive experience in combining client data with external information including industry data, catastrophe models and other weather risk information to form an assessment of the long term cost of weather related claims for a given portfolio. This includes allocation of the cost down to individual geographic units such as postcode or suburb. As part of this process we consider the impact of climate change and natural weather cycles on the expected claims cost.
Flood Risk
Riverine flood risk, which has not been traditionally covered by domestic householders policies, has attracted increased attention in the last couple of years. With a number of insurers now covering flood risk, other market players are considering their opportunities. Finity has assisted insurers in thinking through the strategic product and pricing issues associated with flood cover including:
- Mandatory or optional cover
- System requirements
- Policy wordings
- Using the NFID
- Community vs risk-rating
- Competitor positioning
- Dealing with missing or uncertain data
- PML assessment, monitoring and reinsurance costs.
Finity also uses advanced techniques to estimate elevation levels, filling in the gaps of commercially available flood maps, to assist you in implementation of individual address level flood risk rating.
Contact us
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Tim Andrews+61 2 8252 3385 Scan the tag for Tim’s vCard |
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