[August 25, 2014]

A.M.BestTV: Risk Model Expert Karen Clark Explains "Characteristic Events"

In this ^A.M.BestTV episode, Karen Clark, principal at Karen Clark & Company, explains why insurers and risk managers should look beyond traditional loss analysis and consider identifiable characteristics of catastrophe events.

Clark discusses a tool companies are incorporating into their risk modeling, called Characteristic Events. This metric uses the same data underlying in catastrophe models, but "the probabilities are based on the hazard": the methodology is specifically created to represent characteristics of an event for targeted regions for a selected time frame. "The event doesn't stay the same; the probability of that event stays the same," said Clark. "So the CE methodology does something that PML (probable maximum loss) approach does not do: to clearly identify where a company has exposure concentrations and where they have hot spots."

Click here to view the video program: www.ambest.com/v.asp?v=clark814.

A full-length interview with Clark is also available at www.ambest.com/v.asp?v=clark814a.

Recent episodes of ^A.M.BestTV include:

• Insurance Research Council Report: More Auto Claimants Turn to Lawyers: Despite no-fault insurance, along with insurers having a focus on settling claims amicably, a study from the Insurance Research Council shows that the percentage of claimants seeking attorney representation continues to rise: www.ambest.com/v.asp?v=lawyer814.
• State Compensation Funds Worry About Impact of Opioids: The hot button issue of opioids and their negative impact on workers' compensation costs was considered at the American Association of State Compensation Insurance Funds Conference: www.ambest.com/v.asp?v=aascif814.

^A.M.BestTV covers exclusive A.M. Best information and reports, targeted topics and key developments in the (re)insurance industry every Monday, Wednesday and Friday. Sign up for alerts of episodes at www.ambest.com/multimedia/ambtvsignup.html. View ^A.M.BestTV episodes at www.ambest.tv.

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 © 2014 by A.M. Best Company, Inc. ALL RIGHTS RESERVED.

[ Back To TMCnet.com's Homepage ]