A factor that an underwriter must take into consideration is the Accumulation of Risk. If many potential risk sites are located within the same area, this can cause problems to an insurance company. An example of an accumulated risk is if an insurance company has insured an entire neighbourhood of homes in an area with a high risk for wildfires. If a wildfire were to occur, this would cause the insurance company to stretch its resources to the limit.
To prevent such an occurrence underwrites must be aware of the accumulated risk of an area. Using this page, you can set ‘accumulated risk’ limits to aid underwriters.
To define an accumulation risk, click on then perform the following steps:
§ Note that the ID will be
automatically generated once the accumulation risk entry has been saved;
§ Select the Insurance Class related
to this accumulation risk;
§ Enter in the Name of the
accumulation risk. In the Name 2 field, you can enter in the name of the
accumulation risk in the alternate name of the system if so desired;
§ Select the Country, City
and Area that the accumulation risk is located in;
§ Select the Risk Type;
§ Enter the Max Amount. This
is the maximum amount that should be insured in an accumulation risk. Once this
amount is reached, you will receive a warning;
§ Enter the Backward and Forward
Periods;
Note: the period that will be considered is the
calculation of the accumulation of the risk;
§ Select the Period Units from
the predefined list;
§ Enter the Latitude and the
Longitude of the location, or click to enter the
risk location, accordingly, the Latitude and Longitude fields
will be auto-generated by the system;
§ Once you have finished entering
the necessary data, click.
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