Predictive Modeling for Commercial Risk Financing Programs
Insurance and risk financing programs in today’s complex and unpredictable environment demand the same assessment associated with capital deployment for purchasing new equipment or developing a next generation product. The analysis of various alternatives available must be contemplated based on a range of probabilities, present value and severity potential among other factors. BKS has developed superior analytical methodologies to deliver in-depth and up-to-date information needed to design the best risk financing program. Our custom client decisioning models assist you in confidently choosing the most successful insurance options for your business.
BKS risk predictive modeling experts specialize in providing a wide range of services, including, but not limited to, the following:
- Projecting the experience rating factor before it is promulgated by the bureau
- Analyzing losses to show what specific losses cost in increased premiums
- Forecasting the modification factor for the next policy period
- Computing and verifying the accuracy of the current modification factor
- Evaluating and comparing various loss financing alternatives on a net present value (NPV) basis
- Increasing accuracy of cost allocation and risk management decisions
- Creating an estimated schedule of loss payments
- Computing the net present value of future loss payments
- Hazard Analysis – assess catastrophe and other hazards associated with property locations including terrorism, flood, earthquake, hurricane, and severe thunderstorm
- Loss Analysis – estimate losses including full probability distribution of losses, average annual expected loss and probable maximum loss (PML) from catastrophe events
- Limit and Deductible Analysis – determine adequate and appropriate deductible and limit levels based on risk profile
