Insurance

Science and Engineering to Quantify Risk Exposure:

Primary and Reinsurance

The insurance industry is increasingly turning to quantified assessments to understand and price risk with predominant focus on portfolio-level assessments. For specific exposures that drive an account risk, the industry continually seeks to better understand these exposures via subjective assessments that largely depend on expertise of the individual doing this assessment. This leads to an inconsistent and poorly understood price for the critical risks.

MMI Engineering, with its engineering expertise in the assessment of infrastructure risk from natural and man-made perils, offers great potential to the insurance sector in understanding and mitigating site-specific risk. This benefits underwriters, risk engineers, risk managers, and executives at primary insurance and facultative reinsurance companies, to better understand and manage the risk for critical exposures within an account or a portfolio.

Specifically, MMI Engineering can:

• Develop preliminary risk opinions based on rapid visual surveys
• Develop detailed engineering models of critical exposures for risk analysis
• Perform engineering analysis of facility response to imposed threats (loads) for the peril under consideration, (e.g., for fire, blast, earthquake or hurricanes)
• Develop frequency and severity of range of losses and mitigation strategies
• Develop custom software tools for insurance companies to benchmark risk metrics to their past claims losses (e.g., for hurricanes)

MMI Engineering offers services to different insurance professionals including:

Risk Engineers:

• Can help to develop or validate more realistic credible loss scenarios (e.g., PML, MFL) for the facility
• Develop mitigation strategies with quantified risk-weighted cost-benefit analysis for insured

Underwriter:

• Provide detailed insight into exposed risk that drives largest fraction of account or portfolio risk
• Develop insightful financial contract (e.g., deductible, limits, reinsurance layer) with premiums for different layers commensurate with the in-depth risk view

Corporate Risk Manager:

• ·Similar to a Risk Engineer, develop insights into threats, risk drivers, and mitigation strategies with quantified cost-benefits involved
• ·Will permit meaningful dialogue with insurance company on risk price and risk management

Click here to download a brochure summarizing our services.