We collaborated with leaders in the insurance industry, drawing on the learnings of our industry risk models to create a market-wide view of risk. The result is the ‘Market Model’ which will benefit insurance organisations with limited datasets across the globe.
Quest Marine’s pricing capabilities leverage behavioural trends and traditional data to derive expected loss values. Behaviour is a far more accurate method of assessing risk, hence a combined approach. Until now, this was achieved using client-specific data when modelling. Concirrus has now formulated a ‘market model,’ leveraging the insight of multiple contributors for a market-wide perspective on valuing an account.
Use of the market model gives access to the same suite of features available in client-specific pricing models. The frequency and severity of claims are modelled to formulate a risk score and expected loss calculation. The factors influencing the risk score are displayed relative to a global benchmark for performance assessments. The expected loss is also used for forecasting, where a suggested premium is generated along with an adequacy percentage for existing business. The result is an accurate valuation based on behavioural insight, alongside a comprehensive understanding of how the valuation is achieved.
Drawing on the insights derived from multiple contributors, the market model delivers a view that could not be developed by a single insurer in-house. The scale of aggregate data used means the predictability of the market model becomes more refined and aligned to broader market trends. The outcome of the model is therefore both relevant and highly reliable.
There are no security risks around the use of the market model due to the fact it utilises the learnings from data, and therefore does not draw on the data itself. Contribution to and insight from the model will not lead to data breaches and remains compliant with regulations.
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