CAT modeling and analytical support during contract renewal period for a reinsurance company
A specialty insurer and reinsurer was saddled with high volumes of contracts, during the renewal period. The company was unable to focus on key activities and turned to Infosys BPM for help. The Infosys BPM team took less than a month to learn the ropes, handling everything from basic file operations to providing end-to-end CAT modeling support.
A Bermuda-based specialty insurer and reinsurer, with US$6.9 billion in total capitalization. The company provides catastrophe, property, professional liability, trade credit and bond, and liability coverage worldwide.
The client’s catastrophic (CAT) modeling unit was saddled with high volumes (250 contracts) during renewals that happens twice a year in January and July. The CAT modeling team had to:
- Analyze the ceded portfolio for perils and risk
- Benchmark them against industry standards
- Predict loss exposures
- Provide effective risk and coverage analysis against stated perils
- Provide competitive pricing.
However, due to high volumes, the CAT team could not perform these key activities. Recruiting CAT analysts on a temporary basis to handle peak renewals was a costly proposition and not a long-term solution.
The Infosys BPM team – referred to as the Knowledge Service Center (KSC) CAT team – onboarded a team of statistical analysts, overseen by a manager with significant CAT modeling experience and industry certifications such as CPCU, ARM, and ARe. The Infosys BPM solution was expected to:
- Provide support for reinsurance contract renewals
- Support the client’s CAT modeling unit on risk analysis using CAT modeling tools
- Provide exposure benchmarking and analysis on the ceded portfolio
- Calculate loss exposures and provide analytical support to trend historical losses, develop factors to calibrate model to trended benchmark event losses, and provide sign-off notes.
- Provide ad-hoc / project-based support to CAT modeling unit
- Continuously upgrade CAT knowledge and learn new modeling / analysis on CAT tools
The Infosys BPM team handled basic file operations such as upgrading / downgrading CAT modeling databases. The Infosys BPM team regularly referred to CAT manuals to upgrade their knowledge of CAT modeling tools.
Once the team was armed with enough knowledge, the client increased the scope of the work to handle end-to-end CAT modeling support. The team took up additional work and helped the client to focus on business growth. The team was able to:
- Deliver value-added insights on:
- Modeling analysis – loss models and master loss models, historical losses, loss trending, and comparison of loss from a business perspective
- Exposure analysis reports – comparison of risks and coverages against industry benchmarks
- Take on ad-hoc projects – support client on R&D projects such as model validation and testing
- Quick transition and knowledge enhancement – a one-month learning curve for the initial process
- Supported more than 100 file operations test accounts before going live
- Handled more than 250 reinsurance contracts during peak renewals for CAT modeling
- Compared Cedants exposure and premium from previous year to current year and provided insights
- Provided the wherewithal to support different foreign language documents
- Helped the client better analyze ceded portfolio, risks and exposure, and provide competitive pricing with knowledge-oriented analysis / insights
- Scaled-up and helped the client handle peak season reinsurance contract renewals using CAT modeling tools; without significant increase in cost of operations
- Created additional bandwidth for the client’s CAT modeling teams, thus enabling them to focus on business analysis especially during peak renewals
- Delivered CAT modeling and analysis reports with business value added insights
- Reduced the workload of the client’s CAT modeling team considerably and enabled them to focus on business enhancement activities
“The KSC CAT team has delivered
significant gross (before discounting our effort)
benefit to our CAT modeling team in Zurich during the Q4 2012 renewals and till date in 2013. While it’s true that there was much of our effort involved in 2012, thanks to the KSC team’s
greatly increased self-sufficiency, we are rapidly ramping down our effort this year and I am confident that Q4 2013 will see the KSC CAT team delivering solid net benefit to us here in Zurich. To put things less formally – the team’s doing a great job!”- AVP, CAT Modeling
The Infosys BPM advantage
- Team with insurance, reinsurance domain and deep expertise on industry leading CAT modeling tools
- Ability of the team to be flexible, ramp up and support CAT modeling during the peak renewal periods.
- Extensive experience on CAT modeling and data cleansing activities
About Infosys Insurance BPO
Infosys Insurance BPO services over 45 clients with 1,400+ professionals supporting 15 languages across the globe. We provide end-to-end services across property and casualty (P&C), life, annuity and retirement (L&A), group insurance, and reinsurance
Infosys BPM service offerings for the insurance industry