Insurance Programs

One program. One platform. One set of numbers.

Creating an insurance program requires more than designing a policy.

A new program has to work as a business. The underwriting has to make sense. The pricing has to support the risk. Premium, loss, expense, and profitability assumptions need to hold together. Management needs to understand the opportunity. Actuarial needs to understand the economics. Finance needs to understand the capital requirements. Reinsurance needs to be structured. Capacity needs to be secured. And once the program is launched, everyone needs to know how it is actually performing.

ClimateDelta brings that work into a common operating environment.

A carrier can model a new parametric weather insurance program before committing significant capital to it. Underwriting assumptions can be tested. Pricing can be changed. Expected losses and profitability can be modeled. Alternative program structures can be compared. Scenarios can be run repeatedly as the program moves through underwriting, actuarial, financial, and management review.

The question becomes larger than Does this policy make sense?

It becomes:

Does this program make sense as a business?

A policy represents one risk. A program represents a portfolio of risks and the economics surrounding them.

ClimateDelta allows users to examine the program at that level. Individual policies can be modeled within the context of the broader portfolio. Premium, expected losses, concentrations, limits, exposures, and program economics can be evaluated as the portfolio develops.

That matters before launch, when the organization is deciding whether and how to enter a market. It becomes even more valuable after launch, when assumptions begin to meet actual experience.

The same analytical environment can move with the program from forecast to operation.

Model it. Launch it. Track it. Learn from it.

A new insurance program creates another fundamental question:

How much risk do we want to retain?

The answer can materially change the economics of the program.

ClimateDelta allows the carrier to model alternative reinsurance structures alongside the underlying insurance portfolio. Different retention levels, limits, cessions, and structures can be evaluated to understand how they affect risk, capital, volatility, and expected profitability.

For a new program, this creates the ability to test the economics before making the commitment. Management can examine what the program might look like with greater retention, greater reinsurance protection, or different structures as experience develops.

The insurance program and the reinsurance strategy become parts of the same financial model rather than separate exercises.

And then something else becomes possible.

Once a reinsurance partner becomes involved, the same information needs to move between organizations.

Traditionally, that can mean spreadsheets, bordereaux, data files, email attachments, reports, extracts, reconciliations, and repeated questions about which numbers are current. Information leaves one system, gets transformed, enters another, and eventually comes back.

Each handoff creates friction.

ClimateDelta creates another possibility.

The carrier and reinsurer can operate from the same System of Record. Each participant sees the information appropriate to its role and permissions, while the underlying program, policies, exposures, weather information, and portfolio results remain consistent.

The carrier can see the program from the carrier’s perspective. The reinsurer can see the ceded portfolio from the reinsurer’s perspective.

Different views. Different permissions. Same underlying data.

As the portfolio develops, both parties can monitor performance using the same authoritative information. Reporting can be generated from the same records. Portfolio changes can flow through the system. The need to repeatedly move, re-enter, reconcile, and reinterpret information begins to disappear.

Those are the rails.

ClimateDelta connects the participants who need to operate the program while preserving a common record of the risk.

Many insurers entering a new specialty market rely upon an MGA or MGU for underwriting expertise, distribution, or program management.

Parametric weather insurance may create exactly that situation. A carrier may see the opportunity while still developing the specialized weather-risk underwriting capabilities required to pursue it.

ClimateDelta allows the MGA, carrier, and reinsurer to participate in the same operating environment.

The MGA can underwrite and manage the risks appropriate to its authority. The carrier can oversee the program and the risk it assumes. The reinsurer can monitor the portfolio and the portion of the risk transferred to it.

Each participant has its own role, permissions, responsibilities, and view.

The underlying information remains connected.

Three organizations can therefore participate in the same insurance program without creating three competing versions of it.

One program. One System of Record.

The real value becomes apparent over time.

Before launch, ClimateDelta can help the participants model what they believe will happen. Once the program begins writing business, the System of Record captures what actually happens.

Policies are added. Premium develops. Exposure changes. Weather occurs. Parametric events may trigger payments. Concentrations emerge. The reinsurance portfolio develops alongside the underlying book.

Forecast and actual experience can begin to meet in the same environment.

The participants can ask whether the program is developing as expected, whether pricing assumptions are holding, where exposure is accumulating, how the retained portfolio is performing, how the ceded portfolio is performing, and whether the structure should change.

A program becomes something that can be understood continuously rather than reconstructed periodically.

Insurance has always depended upon networks of specialized participants. Underwriters understand risk. MGAs bring specialized expertise. Carriers provide licenses, balance sheets, and oversight. Reinsurers provide capacity and portfolio risk management. Each has a different role.

ClimateDelta gives them common rails.

The objective is straightforward: allow the participants in a parametric weather insurance program to work from the same underlying information while seeing and controlling what is appropriate to their role.

Different organizations. Different responsibilities. Different views. Same program. Same data. Same System of Record.

That is the Power of One.

ClimateDelta™: One platform for the Insurance Weather Risk Economy.