Reinsurance News

KCC selected by SynchronoSure for risk modeling applications

26th May 2023 - Author: Jack Willard

Karen Clark & Company (KCC) has announced that the Synchrono Group (SynchronoSure) has licensed KCC’s full suite of US catastrophe models, delivered through the company’s new and advanced underwriting application.

The new tool is powered by KCC’s high-resolution modelling analyses that drive the underwriting and decision-making processes for complex commercial policies.

The new underwriting application contains a variety of features, such as allowing underwriters to be able to price multiple layers with a single request and providing different correlation options.

Additionally, losses can be viewed separately by peril or combined. The application is also able to assess the impacts of over 100 building characteristics.

The application, which is also offered as a web portal, provides insurers with bespoke risk information, fully probabilistic Exceedance Probability (EP) curves, Characteristic Events (CEs), and the ability to manage complex insurance terms, including reinsurance treaties.

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Karen Clark, KCC CEO, commented: “We’re very pleased to be partnering with SynchronoSure, an exciting new startup led by industry veterans who know the business. We’re looking forward to working with their diverse team of underwriting, actuarial, and other technical experts who are well-positioned to leverage the advanced capabilities of the KCC models and applications.”

Steve Hartman, SynchronoSure CEO, added: “Our business is designed to properly match exposure to price for all aspects of the policies we underwrite, leveraging both traditional and non-traditional data. Proper recognition of and pricing for the catastrophe exposure on a policy requires accurate catastrophe models across all perils, including severe convective storm and winter storm.

“We selected the KCC models because their advanced, scientific methodologies provide complete and consistent spatial coverage for credible, high-resolution, location-level loss estimates rather than relying on generic territorial loads embedded in standard loss costs. We believe this approach provides us with a better, more refined price point for the accounts we underwrite on an account by account basis.”

He continued: “Additionally, our systems integrate directly with the KCC underwriting application, which can analyze multi-location policies for all perils within minutes, meeting our rigorous standards on processing speed to enable underwriting decisions in minutes rather than hours and days.”

Chris Mossey, KCC Vice President, said: “Unlike conventional scoring tools, the KCC underwriter application runs full stochastic event sets to produce accurate policy and location level EP Curves and average annual losses. The agreement with SynchronoSure includes the KCC models for hurricane, earthquake, severe convective storm, winter storm, wildfire, and inland flood.”

Clark, also added: “KCC is laser-focused on the accuracy of the loss estimates and on continually updating our models to incorporate changes in the environment and climate. We look forward to working closely with the SynchronoSure team to make sure this partnership delivers accurate information along with the operational efficiencies propelling their business.”

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