Industries

Insurance

• What is the cash-flow risk associated with issuing a new type of policy?
• How can you probabilistically estimate the aggregate runoff risk for your portfolio of issued policies?
• How do we incorporate the risk of correlated claim costs in an aggregate claim distribution?
• How will changes in consumer demand patterns affect your business?
• How can you better estimate and control increasing levels of fraudulent claims?

Quantitative risk analysis supports decision making of both providers and consumers of insurance products. Insurance companies are continually challenged to stay current on leading edge and emerging quantitative techniques. Insurance brokers and purchasers of insurance products are faced with a dizzying array of choices in the insurance universe that make it very difficult to select the best portfolio of policies so as to minimize both risk and expense.

Vose Risk Consulting offers custom solutions to unusual insurance risk problems in areas such as operational and credit risk and can assist organizations in making the best coverage selections based on their specific claims history and expectation for future losses. Vose Risk Consulting also offers standard and custom in-house courses in probabilistic risk analysis applications for the insurance and reinsurance industry as well as corporate risk managers.

Clients

• AON Capital Markets
• Bayerische Landesbank, Munich, Germany
• Zurich Financial Services, Switzerland
• BAE, UK
• Saab Aircraft, Sweden

Example Projects

INSURANCE CLAIM ARBITRATION

Problem and solution

A FTSE 100 client purchased insurance to cover any significant drop in its expected cash flows. Ten years later when it was apparent that a claim would be made against the policy and the insurance company contested the validity of the model against which the policy was priced. Vose Risk Consulting was able to successfully defend the appropriateness of the original highly-technical model.