OLDWICK, N.J.--()--A.M. Best Co. has updated its 2012 statement year “Property/Casualty Supplemental Rating Questionnaire” (SRQ) in several key areas. The areas affected include: Agency-Based Production Sources, Non-Traditional Catastrophe Mitigation, Terrorism Probabilistic Loss Modeling, Terrorism Death Benefit Tables, and Enterprise Risk Management (ERM).
The new categories for agency-based production sources will allow for greater detail in market sources. The inclusion of an additional loss return period in the non-traditional catastrophe mitigation section will provide greater levels of detail in the analysis. 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 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. A new question about emerging risks identified by the insurer was added to the ERM section to assist in the discussion of the rating unit’s risk management. A rating unit’s consolidated surplus should be entered into the SRQ (in $000s) to help reduce the amount of manual input into the SRQ for those questions that request a ratio to surplus. This press release will allow sufficient time for companies to compile and provide the new requested information.
A.M. Best continues to put a high degree of emphasis on an organization’s overall catastrophe management and the impact on its financial strength. For those companies who use multiple catastrophe models as part of their risk management, the SRQ requests the output from each model separately. All insurers are requested to provide their view of their catastrophe risk regardless of how many models they use, since their view of risk may be different than the model output. All catastrophe loss estimates are expected to be based on the rating unit’s worldwide exposures.
A copy of the new and revised property/casualty questions can be accessed at http://www3.ambest.com/ratings/default.asp.
Founded in 1899, A.M. Best Company is the world’s oldest and most authoritative insurance rating and information source. For more information, visit www.ambest.com.
Copyright © 2013 by A.M. Best Company, Inc. ALL RIGHTS RESERVED.