CatLossEstimation Service – knowing what to expect

Managing losses effectively today means quick, unbureaucratic and reliable claims handling. In the event of natural catastrophes, the use of sophisticated geoinformation technology and address-level geocoding are of unique help. With its CatLoss Estimation Service MR provides quick and unburaeucratic evaluations in the event of storm and hail losses.

Munich Re’s CatLoss Estimation Service is a loss management tool that uses geocoding technology to prepare loss prognoses immediately after a severe weather event. It provides support for both claims handling and accumulation control.

The need for insurers to obtain information is at its greatest immediately after a storm or hailstorm event. Within two working days of the severe weather event, the CatLoss Estimation Service indicates how heavily the portfolio is likely to be affected. The service combines weather data with portfolio information and compares these in detail.

The CatLoss Estimation Service enables insurers to estimate their losses before the actual wave of claims is upon them. This timely information also helps to improve claims control. Besides forecasting losses, the Adjuster Index Module incorporated in the CatLoss Estimation Service provides information on the local loss amount. Postcode-based analyses enable clients to optimise the coordination of their loss adjusters and deploy them in the areas worst affected.

How does CatLossEstimation Service work?

At the initial stage, Munich Re receives exact addresses for the policies in the client’s portfolio. These are geocoded at Munich Re, which means that the exact latitude and longitude of each risk is located on the map. Once the storm has moved on, the CatLoss Estimation Service superimposes the storm field on a geocoded map of the portfolio and compares the two datasets. Risks can thus be filtered out that are affected by wind forces greater than 8 on the Beaufort Scale, i.e. those of relevance for insurance and losses. Based on the wind speeds and the sums insured, the service can determine how heavily the portfolio has been affected. Evaluations are available just two days after the event.

A few weeks after the event and after the claims notifications have been processed, the client informs us of the actual claims burden and the risks affected. By linking these data with the prognoses prepared in advance of the event, the system learns the special features of the portfolio – and further refines the evaluation with every new loss occurrence.

CatLossEstimation Service in use

At present MR’s service offers evaluations of hail and storm damage. No data are as yet available in Germany for other natural hazards such as flooding that are of adequately reliable quality for the service.

MR‘s team of consultants introduces the CatLossEstimation Service to clients personally and elaborates an individual test evaluation upon request.

A small tool with great benefits

The advantages at a glance

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  Munich Re’s CatLoss Estimation Service is unique on the European insurance market.
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  Quick availability of loss prognoses helps to proactively navigate and process losses. The quote of costs decreases.
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  Graphic evaluations quickly and clearly visualise risk and loss situations.
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  The CatLossEstimation Service enables the filtering of potentially fraudulent claims.
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  It helps to develop a marketing strategy and monitor the portfolio.
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  And manages the data via MR’s virtual, protected client portal.