Monitoring and analying business interruption losses during and after geopolitical unrest

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The client

A large US reinsurer needed help to map, monitor and analyse their exposure to protests and unrest across the USA during the summer of 2020, with a view to improving the accuracy of their reserving and reporting.

The problem

Man made events are often just as costly and disruptive as natural catastrophes, and protests in over 550 towns and cities across the US meant that monitoring and quantifying business interruption losses was a huge challenge, with conflicting and disparate data from cedants and the media leading to inaccurate loss estimates.

The solution

MIS analysts have a deep understanding of monitoring and response to geopolitical and terror events, as well as business interruption, as a result of years of experience acting as expert witnesses for London market insurers on complex coverage and defence disputes.

We began by applying a geo-ringfence to insured locations. A myriad of data sources including cordons and road closures, law and order measures such as curfews, security forces and emergency services response, IoT, CCTV and social media and news aggregators were then fused with underwriting data to create an ‘impact layer’ to each location. Near real time analysis of business interruption was delivered seamlessly.

The Results

MIS delivered remote insight that enabled monitoring and analysis of business interruption exposure in close to real time – never achieved before – and we were able to improve the accuracy of the reinsurer’s initial reserving estimates by over 75%.

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