Boston-based Karen Clark & Company is launching what it describes as new service that will review carriers use of catastrophe models.
According to a press statement, the new service titled “Thinking Outside the Box Catastrophe Management Operational Review” and will exam a company’s use of catastrophe models and the integration of catastrophe loss analytics into risk management operations.
“Insurers frequently use catastrophe models in isolation to determine probable maximum loss estimates, and model results may not be properly integrated into the operations of the organization,” said John Tierney, senior vice president, in the press statement. “In addition, point estimates from the models are subject to high volatility and instability, making it difficult to develop a robust framework for integrating catastrophe information into risk management decisions.”
Firm president Karen Clark argues the new service will helps insurers “develop better and more holistic risk assessment and risk management processes.”
“It goes well beyond catastrophe modeling and provides information companies can use to accelerate growth while controlling reinsurance costs and maintaining or enhancing financial strength ratings,” Clark said.
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