4. A New Era of Risk Management and Underwriting
To say that Hurricane Andrew was a wake-up call for insurance underwriters, actuaries and other risk managers is an understatement. The extreme conditions, challenges of post-catastrophe response, and record costs combined to spur a reassessment of risk management capabilities and investment in technologies – in particular, hurricane and storm models -- that could help insurers and other businesses do a better job of accessing risk-related information at an increasingly granular level, and then to use that data to analyze and forecast potential or emerging catastrophe risks. Along with increased sophistication in the models, insurers’ catastrophe planning and response strategies also have taken advantage of concurrent advances in analytics, information management, computing power and reporting.
Source: Business Insurance
