Underwriting and portfolio management
Of all the perils, windstorm causes the greatest property insurance loss in Europe
Individual events can cause huge economic loss (for example, Kyrill 2007- $10.0Bn, and Xynthia 2010 - $6.6Bn), but a succession of smaller events can cause significant aggregate losses in any season. Such exposure can be managed down by pricing risk at a local level and balancing the portfolio across high and low risk zones. This is only possible with an understanding of local hazard.
Using Met Office Euro Windstorm Hazard Maps, risk analysts and actuaries can quantify risk at local level before applying exposure factors to make rate setting decisions. Users select return periods according to company compliance policy and appetite for risk.
By applying scores or RAG ratings to the hazard maps, analysts can balance the portfolio across lines of business and between higher and lower risk domains. Possible outcomes from research using hazard maps include reduced exposure and higher acceptance rates.
The Met Office Euro Windstorm Historical Catalogue of more than 6000 real windstorm footprints and tracks reveals the impact of a chosen storm or cluster of storms on a policy, local area or region.
Drawn from analysis of nearly 40 years of observations across Europe, footprints include 72 hour maximum gusts at every grid point of a NWP model.
With these tools, underwriters can understand the location and intensity of significant gusts in their current book, derive vulnerability curves and evaluate probable maximum losses (PMLs) when writing new policies.
For specialty property and casualty policies, we can also provide a site-specific wind climate analysis, down to 100-m resolution. Parameters include wind speed, direction, exceedance values, shear and turbulence intensity.
For more information on our commercial services, please contact the team on 01392 885680 or firstname.lastname@example.org
Last updated: Nov 9, 2015 8:25 AM