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FOR IMMEDIATE RELEASE
OLDWICK - JANUARY 15, 2015 10:56 AM (EST)
A.M. Best has updated its 2014 statement year "Property/Casualty Supplemental Rating Questionnaire" (SRQ) in several key areas. The areas affected include: Risk Appetite and Risk Tolerance, Natural Catastrophe Probable Maximum Loss (PML) Analysis, Casualty Catastrophe Deterministic Loss Estimates, Terrorism Probabilistic Loss Modeling, Terrorism Death Benefit Tables and Cyber Risk.
The request for an overall risk appetite and risk tolerance statement allows A.M. Best to consistently capture each organization's view of their overall risk appetite and risk tolerance. The inclusion of an additional loss return period in the natural catastrophe section will provide greater levels of detail in the analysis of natural catastrophe risk. The expansion of the catastrophe analysis to include casualty exposures provides greater understanding of a company's ability to identify, measure, monitor and manage existing and emerging casualty risks. Terrorism loss estimates at various return periods are requested if probabilistic loss modeling is used in the rating unit's analysis of terrorism exposures and will provide a probabilistic view of terrorism exposure on a gross and net of reinsurance basis in addition to the current deterministic view. Changes to the death benefit tables in the terrorism section were made to reflect the most recent available benefit information by state. The addition of inquiries specific to cyber risk coverage will allow A.M. Best to monitor the accumulation of cyber risk protection being provided, as well as the amount of protection being purchased by each insurer and the industry as a whole.
A copy of the new and revised property/casualty questions can be accessed at http://www3.ambest.com/ratings/default.asp .
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