Casualty risk is rarely linear. A single event could affect many insureds across several lines of business, triggering disproportionate payouts, depleting balance sheets, and possibly threatening solvency. While carriers have been aware of the domino effect that could follow a casualty event, a realistic approach to risk mitigation has been elusive. Sufficient data and modeling capabilities historically have been in short supply. Fortunately, there is a new way to manage this threat. The Casualty Cat Model, developed jointly by Guy Carpenter and Arium, Ltd., makes it possible to track exposures throughout your portfolio and develop a plan for protecting your capital.
November 13th, 2008
Posted at 1:00 AM ET