Trusted experts in
catastrophe risk modeling and management

KCC consultants possess depth and breadth of knowledge in all natural perils and commercial catastrophe models. Founded by two catastrophe modeling pioneers, our consultants average over 15 years of experience in catastrophe model development and evaluating model results. This experience provides us with a detailed understanding of the scientific and engineering data and assumptions underlying the models, and a unique capacity to critically assess their strengths and shortcomings.

We've partnered with all sizes and types of companies including global reinsurers, top 10 P&C insurers, regional insurers and ILS investers. KCC consultants work with each client to design solutions that best match their priorities, internal capabilities, and budget. The specific challenges facing each organization vary, but clients have often approached KCC to address fundamental components of their catastrophe risk management strategy including: Best practices for evaluating model output and building a proprietary view of risk, developing long term underwriting strategies in the face of model changes, implementing capital allocation strategies, risk metrics, and risk monitoring reports that can be applied across the organization.

Our Consulting Services

We support the diverse needs of our clients with a broad array of consulting services.

Whether you're seeking a focused evaluation on one aspect of the operation such as your management reports or a broader review that evaluates all of your catastrophe management processes, KCC can tailor an engagement to fit your particular needs. We start with an in-depth discussion to ensure we fully understand your challenges and desired results, and schedule frequent contact throughout the engagement to confirm progress and share knowledge with your team. We deliver unsurpassed expertise in catastrophe risk, high quality service and results.

Comprehensive Reviews

Comprehensive reviews are thorough evaluations of all risk management processes including:

  • Exposure data management
  • Catastrophe modeling
  • Pricing and underwriting
  • Portfolio analytics
  • Management reporting

The review process entails one-on-one interviews with senior management and on-site reviews of essential process steps. The engagement culminates with an analysis of strengths and weaknesses of current processes, detailed recommendations for enhancements, and a peer company analysis. Engagements can be tailored to focus on a subset of the processes listed above.

Model Evaluations

Model evaluations can be conducted for any catastrophe model (commercial or internal) and for any peril region. The following model aspects are tested against current science and historical data:

  • Event frequency
  • Event severity distributions by location
  • Damageability assumptions
  • Loss estimates for historical events
  • Probabilistic loss estimates

The evaluations lead to recommendations on model credibility, improvements, and adjustment factors. Input on alternative techniques for using multiple models is also provided.

Customized Loss Analyses

Through our RiskInsight® open modeling platform, we provide our clients with independent estimates and multiple views of loss potential. Analyses can include:

  • Probabilistic loss analyses
  • Characteristic Event (CE) analyses
  • Detailed claims analyses and customized damage functions

We can also provide multiple views of risk, such as near term views and climate change scenarios.

Competitor Analyses

Competitor analyses entail a high level review of internal processes and senior management interviews. Engagements typically focus on the following areas:

  • Staffing and organization
  • Resource allocation (R&D, modeling, other infrastructure)
  • Utilization of models and other tools
  • Internal processes
  • Portfolio reporting

Competitor analyses involve a review process that is as broad but not as in depth as a comprehensive review. The engagement culminates in high level observations and recommendations and a peer company analysis.

Executive Briefings

Executive briefings can be tailored to specific needs but typically entail a one to two hour presentation to a company's board of directors and/or senior management team. Typical topics are:

  • The risk in a particular peril/region, e.g. Northeast hurricane, New Madrid earthquake
  • How the models work and why there is so much uncertainty and volatility
  • Specific model updates and changes

Bespoke Engagements

Consulting engagements can be customized to fit any need. Some other types of engagements include:

  • Exposure data quality audits
  • M&A due diligence
  • Rate filing support

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