Exposing It All

Reinsurers are finding new ways to help insurance carriers understand key information on exposure and loss potential through risk modeling.

Sometimes the first choice is the best one. For Benfields U.S. operations, working with risk modeling provider MapInfo has been a partnership that keeps improving as the reinsurance intermediary studies new ways to provide information to its insurance-carrier customers. Benfield was looking for ways to display information for its customers, showing what kind of exposure and loss potential the different carriers have, according to Jason Johannsen, assistant vice president in CAT modeling for Benfield Inc. It made more sense to show that information visually as well as through reports and tables, he says. We had to figure out a way to display that information accurately for our clients.

Headquartered in London, Benfield is one of the worlds leading independent reinsurance intermediary and risk advisory businesses. With more than 1,600 employees worldwide (600 U.S. employees), the company provides a range of specialist reinsurance, insurance, and risk advisory services to more than 1,000 customers located in more than 100 countries.

Benfield has been using MapInfo technology for several years. Weve looked at other mapping software, but this was software that didnt require a whole new language, so there was some ease-of-use functionality, Johannsen says. [MapInfo] met our needs and continues to do so.

By graphically showing carriers where their exposures are located, the tool helps paint the picture of what risk potential the carriers have. We initially started using the software to display graphically insurance in force and loss potential for insurance carriers on a county or ZIP Code level, reveals Johannsen. We would run analyses, look at their exposure, and produce a map displaying that information. The service goes along with the other reporting Benfield does for its clients, including exposure reviews and natural catastrophe modeling. It is part of the final product we give to our clients to help explain where their exposure potential came from, says Johannsen.

Over the years, Benfield has upgraded the software and currently is using version 7.5. The newer version allows Benfield to do individual location mapping, using some of MapInfos additional tools such as StreetPro. This offers the customer different layers of data that help frame a picture of where exposures are, using three-dimensional mapping and other tools. Weve really expanded on the basic thematic map to look at it for use in a lot of different areas, states Johannsen.

From time to time, Benfield examines MapInfo upgrades, looking at the added functions, according to Johannsen. As the broker has increased its usage of the technology, it has developed new ways to use the product that are within the potential of the MapInfo technology, he notes. It fits into our business strategy very well because we want to provide our clients with the information to make clear and accurate business decisions, he says.

Benfield continually is developing new ways to use the MapInfo product. That includes the use of StreetPro, which supplies high-resolution street detail. It delivers detail mapping of streets, allows Benfield to do actual querying, and looks for answers within the software in addition to the reinsurers external solutions.

MapInfo Professional helps Benfield quantify loss potential and exposure concentration for insurance carriers by providing a visual representation that maps out exposure loss analysis. Now Benfield easily can show a client whether it is overexposed in a specific area. A digital map clearly can illustrate this exposure better than any spreadsheet ever could, asserts Johannsen. A picture is worth a thousand words. The maps also are useful for a number of Benfields international clients, as maps are understood in any language, he points out.

MapInfo helps us get information and clearly display what kinds of exposure potential customers have and what areas are driving their potential losses, concludes Johannsen. With this knowledge they can make better business decisions regarding the amount and type of reinsurance to purchase to protect their business. ROBERT REGIS HYLE