Review shared exposures across an insurance portfolio
Connect customers, suppliers, platforms, locations, assets, claims, policies, and external events to reveal concentrated risks across the insurer's complete portfolio.
4 min read
Most underwriting decisions focus on the level of an individual customer or policy. However, insurance companies also need to understand risks across their entire portfolio.
Individual risk profiles can hide shared dependencies
For example, an insurer may have many technology companies under contract, and several of them may depend on the same supplier, cloud provider, software platform, or cybersecurity service.
Individually, each company may appear to have an acceptable risk profile. However, if the shared supplier or provider experiences a major cyberattack or operational failure, several insured companies could suffer losses at the same time.
Connect risk across the complete customer base
Consilience could connect customers, industries, suppliers, locations, assets, claims, policies, and external events across the insurer's complete customer base.
Questions the insurer could ask
The insurer could ask:
“Which customers depend on the same critical supplier?”
“Which companies in our portfolio are exposed to the same cyber vulnerability?”
“How many insured customers could be affected by this new regulation?”
“Which geographic regions contain the highest concentration of insured assets?”
“Which industries are showing an increase in claims?”
Understand concentration before adjusting the portfolio
This allows the insurer to identify shared or correlated risks that may not be visible when customers are evaluated individually.
The purpose is not necessarily to accept fewer high-risk customers. Instead, the insurer can better understand where risk is concentrated and decide whether pricing, coverage limits, reinsurance, or portfolio diversification may need to be adjusted.
Try this workflow with your documents
Learn the steps behind this workflow, then try them with your own sources.
