“We Can’t Control the Catastrophic Events. But We Can Control How We Deal With Them.”

Join our upcoming webinar and learn about risk modeling best practices from RMS Analytical Services

Standard and Poors (S&P) has been providing ratings for insurance carriers since 2005 by examining their risk management practices. They view effective Enterprise Risk Management (ERM) as a supporting pillar of their rating analysis, as ERM reaches across all the core attributes of a business.

This includes a carrier’s treatment of catastrophic events, and their preparation for the “unexpected”, with S&P laying out a method for carriers to establish best practices in this area. And, according to their recent findings, they concluded that carriers with stronger ERM programs weathered the 2017 natural catastrophes better than those with weaker programs.

S&P saw the cat events of 2017 in the United States as a real-life “stress test” of carriers’ best practices, after a few relatively benign years previously. 2017 saw events from the HIM trio of hurricanes — Harvey, Irma and Maria produced an estimated US$80 billion in insured losses; hailstorms in the Midwest and Great Plains, through to California wildfires. In particular, flood related perils impacted personal lines carriers tremendously in 2017; industry flood losses from Harvey alone ranged from US$21 billion to US$37 billion. Flood events feature again in 2018, as evident from Hurricane Florence in September, being reported as the wettest tropical cyclone ever recorded in the Carolinas.

A home in Pollocksville, North Carolina, which had been flooded up to the second story floor after Hurricane Florence. Picture: RMS Recon Team

What stands out for carriers is that the extreme losses a cat event causes cannot be treated adequately through actuarial sciences which deals with averages. This is the reason why S&P includes the carriers’ cat management practice as a key component of risk management — read more about their research and see ratings of insurance carriers here.

In the light of the various cat events we have witnessed in 2017 and now in 2018, we have arranged for a webinar to share best practices in the space of generating modeling insights for catastrophic perils. RMS Analytical Services, which helps more than 100 clients to analyze their account exposures and portfolio exposures to cat, has arranged for three exemplary panelists for this event.

Mark Cravens, Vice President of Client Solutions at RMS, will share his extensive background in ERM. Klara Menaker, Vice President Cat Modeling Manager at Hallmark Financial, brings her years of expertise in cat modeling across brokers, reinsurers, and insurance carriers, and Todd Rein, Client Director at RMS, provides his expertise on the tools and how to make the best use of them in taking those critical business decisions in shaping the book.

Attend the webinar if you are interested to know:

1. How ERM practices within a carrier can be aligned with the business objectives to develop a harmonious strategy.

2. How our client, Hallmark Financial Services, has leveraged the best practices to improve their business outcomes, across multiple dimensions.

3. To learn more about how to get the most value from your investment in cat models and what you should keep in mind (from our experience across multiple clients).

I look forward to seeing you at the event on Wednesday, October 31 at 1 p.m. EDT. If you are unable to attend on the day, we will send you a recording of the event, once you register. To learn more about RMS Analytical Services, click here.

Rajesh Narayan

Senior Director, Product Management, RMS

Rajesh Narayan CPCU CIOP LSSBB, helps insurance carriers establish cat modeling best practices in his role as Managed Services Business Leader for RMS.

His work over the past 18 years in the P&C insurance industry has centered around increasing the reach and availability of insurance globally through core operations transformation using data, analytics and process optimization. He can be reached on LinkedIn.

Leave a Reply

Your email address will not be published. Required fields are marked *