The Importance of Building Characteristics in Modeling
Recent modeling changes are leading to higher PML estimates for carriers. These changes will have a ripple effect throughout the insurance industry. But one more thing is almost sure to happen; carriers will be paying more for reinsurance..a lot more. This development has led carriers to search for ways to reduce the amount of reinsurance they need to buy. Look no further, the RiskMeter can help!
The importance of building characteristics can be felt throughout the insurance industry from Reinsurers all the way down to Brokers. When building characteristic information isn’t provided, it’s common for year built, number of stories, roof shape, etc., fields to be labeled as “unknown” during the modeling process. Below you will see how this incomplete information directly affects Reinsurers, Carriers and Brokers.
