Catastrophe Management

Aon Benfield Analytics
Effective catastrophe management is an essential component of an insurer’s risk management program and demands a comprehensive approach to risk assessment, transfer and mitigation strategies. Political and social issues are emerging as the debate on cat model accuracy and their general efficacy is becoming more volatile. Insurers’ programs need to consider the underestimation that may be embedded in the results used to set limits and retentions.

Catastrophe Modeling Capabilities
Using significant expertise of all major catastrophe models, our analysts overcome data and model limitations to provide clients with a comprehensive view of their portfolio. The team is in regular dialogue with all major modeling firms, and provides clients with detailed explanations for model changes and interpreting their potential effect on results. Comprised of mathematicians, statisticians, software engineers and catastrophe modeling specialists, the team focuses on optimal reinsurance program design, more efficient catastrophe reinsurance pricing and devising a transaction that is accretive to the client’s cost of capital. Areas of expertise and services include: Data collection Data cleansing Analysis of modeled results Accumulation analyses “What if” scenarios Catastrophe alerts Latest projections of storm path and intensity

Portfolio Optimization Capabilities
Our portfolio optimization experts help companies manage their catastrophe risk exposures to increase profitability and achieve growth objectives. Drawing from the industry knowledge of our engineers and catastrophe modelers, the team employs innovative analytics to identify the portfolio that achieves the optimal risk / return trade-off. We provide clients with customized, actionable recommendations to plan for future growth and address non-renewing, unprofitable business with a minimal loss of underwriting premium.

Aon Benfield Contacts:
Dan Dick +1.214.989.2167 Wendy Hayes +1.952.886.8042 wendy.hayes

Sophisticated Analytic Tools and Technology
Aon Benfield’s proprietary exposure management tools such as Cat Score and ImpactOnDemand enable clients to visualize and quantify the potential impact of a specific catastrophe to their portfolio in real time. The technology offers clients secure, continuous access to their catastrophe exposures, modeled loss estimates and cost allocations of reinsurance and capital at different levels of resolution. Bringing clients to the next level of strategic exposure management, Aon Benfield’s analytic tools and technology help drive insightful business decisions.