Analytics is a Key Component to Your Risk Management Strategy

Business Insurance is continually one of the largest cost drivers for companies, but too often companies are not fully utilizing data and analytics to ensure they have the most cost-effective programs in place. Analyses such as future loss projections, collateral evaluations, EMR analysis and property modeling provide a data-driven basis for making business decisions.

Engaging a dedicated analytics team can help dig into different metrics to be sure the most cost-effective program is put in place. This team can help businesses:

Identify cost drivers and trends
Work toward lowering their experience mod
Evaluate cost effectiveness of large deductibles and SIRs
Evaluate collateral requirements
Drill down from policy level to individual claims
Benchmark program performance to industry averages
Evaluate program design modifications

An analytics team can run projections to help better understand a company’s risk, allowing the business to choose a program that balances cost with their tolerance for risk. As the market changes, an alternative risk financing structure may be crucial. It’s important to get ahead of the marketplace and allow data to assist your decisions.

Here’s how our analytics team was able to help a retailer review their CAT modeling and determine if they needed to change their limits.

A large RV and camping retailer’s lenders were questioning the limits they carry for CAT perils on their property coverage. The retailer enlisted the support of their MMA insurance broker who has a financial analytics team ready to help.

The financial analytics team quickly:

Ran a CAT Modelling report
Ran a property value stratification report
Met with the retailer to go over the findings

It was determined the retailer’s limits were sufficient for their CAT modelled exposures. They were then able to meet with the C-Suite to communicate the coverage in place was adequate. This prevented the retailer from having to seek additional limits to satisfy the lenders, saving them a significant amount of potential premium.

The report’s findings also helped highlight where coverage was close to potential losses modelled. This helped the retailer prepare for the potential need to increase limits as they expand.

This is one of many examples of how our team deploys analytics to advocate for our clients, and to be sure we are providing them with best-in-class service. Contact a member of the ‘A’ Team to utilize your data and analytics to make informed decisions on cost-effective programs.

ABOUT THE AUTHOR

Mary Strickler

Mary Strickler is a Senior Data Analyst at Assurance in the Business Insurance division. Mary partners with Assurance’s production teams to maximize the financial impact of insurance programs through data and analytics. This includes evaluating the potential costs and savings of various loss renentions and continuously analyzing losses to spot trends that can be used to form actionable risk management strategies.