Broker and Actuarial Services Partner to Streamline Layers and Provide Cost Relief
Background: Seeking Cost Savings and a Streamlined Program
AmWINS Brokerage is committed to assisting retailers like you to deliver optimized pricing, deductible structure, layering and coverage options for your clients. As a part of your team, we utilize the power of our entire organization to address your unique needs and challenges. We recently assisted a retail client that truly benefited from our tools and expertise. The retailer, whose large Earth Movement account was up for renewal, communicated two primary goals: meaningful cost relief and a substantially streamlined program.
Analytical Resources Matter
As with all large Earth Movement accounts, our Brokerage team worked closely with our Actuarial Services team to ensure we fully analyzed the insured’s risk of catastrophic loss. For example, our actuaries generated dozens of iterations of RMS and AIR modeling scenarios, using a variety of attachment points and deductibles, allowing the Brokerage team to understand that the average annual loss (AAL) predicated from one model was materially lower than the other. This insight provided by two sets of risk modeling software not only allowed the Brokerage team to understand the reason behind the expiring pricing, but also better enabled the Brokerage team to target markets who were most likely to have an interest in this specific opportunity.
Equipped with modeling analytics, the Brokerage team quickly identified that the long-standing incumbent carrier in the $25M excess of $25M Earth Movement only layer (specific to California, Hawaii and the Pacific Northwest) was not going to be the most competitive market for this placement. In fact, the Brokerage team determined that the entire excess placement was not optimally layered and therefore did not generate the most competitive coverage design for the client.
With AmWINS on your team, you have the ability to engage in strategic discussions with your insureds about pricing, deductible structure, layering and coverage options. In this particular case, the carrier that we targeted for a sizable amount of capacity utilizes AIR as their primary modeling tool. Our knowledge of the modeling data provided our Brokerage team with a distinct advantage in their negotiations regarding the program. Armed with the enhanced modeling knowledge provided by our analysts, our Brokerage team relayered and repriced the account, substantially reducing cost and demonstrating to our retail partner the tangible value of having AmWINS on your team.
To learn more about how we can assist you in better serving your clients, please speak to your AmWINS broker today.