Expert support for catastrophe and exposure management
Re/insurers and brokers are realising the value of partnering with a strategic managed services provider to keep abreast of new developments in catastrophe and exposure management, as Monalisa Samal and Puneet Bajpai of Xceedance tell Baden-Baden Today.
When managing a global portfolio of catastrophe risk, insurers, reinsurers, and brokers are increasingly turning to experts in this field for support in handling a growing array of vendor models and to better manage their exposure.
One company delivering such insights is Xceedance, a strategic managed services provider that specialises in working with re/insurers and brokers globally to enhance operations and systems across critical phases of the insurance lifecycle.
Monalisa Samal, vice president in the catastrophe and exposure management unit at Xceedance, explains the firm’s vast familiarity with vendor catastrophe models and various exposure management methodologies. The company partners with its clients to help them gain better insights into their risks.
Puneet Bajpai, also a vice president in the catastrophe and exposure management unit at Xceedance, describes the company’s experience in comparing, evaluating, and fine-tuning a range of models—and in customising risk estimation processes for its clients.
“An industry-knowledgeable managed services provider such as Xceedance can augment the objective measurement of current catastrophe risk exposures and capitalisation corresponding to the risk management goals of re/insurers,” he says.
“We strive to quantify the nature and probabilities of losses, as well as the risk tolerance of our clients, in ways that produce actionable insights,” Samal adds.
“Quantification allows our clients to deploy capital more effectively. For insurance companies and risk managers, we can provide comparative analyses and leverage our know-how to create proficient risk assessment tools for individual client portfolios.”
This assistance helps clients better manage potential build-ups of catastrophe risk exposure. “We can analyse areas in which clients might be overexposed and make recommendations on high hazard exposures. If those risks are modelled, we examine the vendor models; if not, we work with our clients to scrutinise a variety of underwriting information and local data,” Samal notes.
The firm’s worldwide outlook reinforces the risk analysis benefits it can provide for clients. “Xceedance studies all risks globally and we apply client-specific aggregation methodologies to identify exposure concentrations. Our insurance and technical experts are able to assess the outputs and results of many vendor models globally, and ascertain their strengths and limitations,” Bajpai says.
The Xceedance approach helps clients evaluate their risk appetites, and provides underwriters with useful data insights for determining acceptable exposure limits in insured portfolios.
Samal says her multifaceted teams help clients optimise the assorted technologies and tools at their disposal to establish underwriting guidelines.
“We work collaboratively with individual clients to test various sensitivities that can help risk managers in designing guidelines within their risk parameters.”
With expert support from Xceedance, clients are well-positioned to control, reduce, redistribute, or transfer catastrophe exposure. “Much of what we do is about managing accumulations of risks and helping underwriters make better decisions. The nature of recent hurricanes illustrates why this is so important,” Samal states.
A managed services partner can give re/insurers independent evaluations of models and help to develop integrated modelling solutions.
“This comes down to taking a holistic approach to cat modelling. We use our accumulated knowledge to integrate multiple methods and to develop the most suitable and beneficial outcome for each client,” Bajpai says.
Xceedance has partnered in the development of numerous advisory services in modelling and exposure management for clients that apply specific vendor models or prefer to develop their own view of risk. Many of the services are bespoke.
Additionally, the company assists clients faced with complex risks for which traditional models are not available.
Bajpai says the prevalence of recent catastrophic events worldwide makes it even more important for re/insurers to have deep visibility into potential catastrophe risk exposures in their books of business.
“Considering recent hurricane characteristics and losses, our clients cannot necessarily rely on singular models. It is often more productive to have multiple perspectives.
“With global experience in working with clients on various models and platforms, Xceedance can be a valuable partner to devise distinct catastrophe and exposure management strategies for re/insurers.”
Xceedance is a global provider of consulting and managed services, technology and data sciences to insurance organisations. To learn more, visit www.xceedance.com
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