Introducing "Company Underwriting" in CoMeta!
- Account underwriting: A newly designed account underwriting workflow that makes it easier than ever to assess latent casualty risks for thousands of companies.
- Portfolio underwriting: Evaluate the impact of your underwriting decisions on portfolio-level aggregations of latent casualty risks.
- Exclusion write-back: Now you can quantify the impact of excluding specific latent casualty risks as well as covering those risks on a named-peril basis.
- Save your research: Every underwriting decision is precious. Save the results of your underwriting research for later reference and to share with your team.
Company underwriting in CoMeta makes it easier than ever to assess latent casualty risk for your accounts. From CoMeta's landing page, simply click on Company Underwriting (1) in the left-hand navigation menu. A search bar will open on a separate page allowing you to find your account.
Once you've selected your account you'll be on the Company Underwriting page where, if you so desire, you can choose another account (2) or choose a book of business (portfolio) to which you are underwriting (3). You can also set a default portfolio that will be loaded every time you return to this page. By the way, selecting a portfolio is not required here and you may find that you need to reach out to your account manager to enable this functionality.
Having selected an account and portfolio, you can now examine the "Underwriting Workspace." If the account exists in your portfolio, you'll see one or more policies in the Renew or Edit Existing Policy drop-down along the top (4) and the terms and conditions (limit, attachment, etc.) for the policy with the lowest attachment point on the left (5). If this is a new account, though, those fields will be empty.
Before you go any further, you might want to examine CoMeta's estimates of ground-up loss for your account (6). These numbers give you a sense of how significant latent casualty risks are to this account, irrespective of your underwriting decisions. You'll see an expected loss value as well as various measures of tail loss, like tail value at risk (TVaR) and probable maximum loss (PML). Loss latency is our measure of when those expected and tail losses will be realized. Clicking on the graph icon will show you the exceedance probability and loss latency curves for the account.
You're now ready to estimate losses given your selected terms and conditions. If the portfolio you write to has established a standard set of exclusions (lead and silica in this case), you'll see them listed below the results pane (7). If you're renewing an existing policy, go ahead and hit Calculate (8). If it's a new account or you want to make some edits, enter the policy terms and conditions on the left first and then hit Calculate.
Once you hit Calculate, policy-level loss estimates will appear in the results pane (9). In this example, the selected policy generates $30,000 in expected loss. Tail losses as measured by TVaR(5) are $500,000. If you want to experiment with different terms and conditions - and you know you want to - go ahead! Just hit Reset to clear the current terms and conditions or edit any field as you see fit and then hit Calculate again. You can do this as much as you like. CoMeta won't judge you.
Great casualty underwriting starts with thinking carefully about the latent risks inherent in an individual account. It's also really important to be thinking about how your underwriting decisions impact portfolio-level aggregations. After all, an account might look like a great risk on its own, but that same risk could be adding unwelcome aggregations to your portfolio.
The power of CoMeta's portfolio underwriting feature is to give you a quantitative estimate of the impact of your account underwriting decisions on portfolio aggregations. All you need to do is look at the "delta" portfolio loss statistics in the results pane (10). A simple rule of thumb is that the account adds overall diversification if the portfolio tail loss measures increase by less than the account tail measures.
Perhaps you've also received specific guidance about managing aggregations for a particular Litagion agent. Just expand the "Litagion agent drivers and scenario losses" card (11) to view detailed account and portfolio loss statistics by Litagion agent and scenario.
We've developed a new workflow for applying exclusions and then writing those exclusions back as stand-alone polices, if you're so inclined. Click on Exclusions (12) to apply exclusions (duh!) and then click on Named Perils (13) to explore the possibility of covering those excluded risks on their own. Now you're cookin' with gas!
Save your research
You've worked hard on this account. No matter what your decision, you should save your work! Jot down some notes in the comments box (14) and hit Save (15). Your underwriting research will be displayed on a card down below (16). You can download this card to a PDF or print it for your records. The results of your work will be available to you the next time you return to this account. Tell your colleagues too! Your work will be memorialized should they visit this account in the future. Of course, you can also delete your research if you want. But don't be so humble!