Underwriting SetupUnderwriting Setup\Accumulation Risk

 

 

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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