Page 7 - Risk Management Bulletin April -June 2021
P. 7

RMAI BULLETIN APRIL TO JUNE 2021


             Data Analysis                                    Industry world over. Looking at the parameters of the
                                                              Tropical Cyclone at the client location as given by the
             1. With GIS based data analysis, we have developed
                 Web-based application, this application enables  Risk Assessment Report of the web application the
                                                              Insurance companies  can fine tune their MPL
                 marking of the location of the client correctly
                 using its Longitude/Latitude.                Estimates to realistic levels. In our view Insurance
                                                              Companies must analyze claims paid during latest 5 or
             2. Four damage zones viz. Red Zone (with high wind  6 cyclones using our zones to arrive at realistic MPL
                 speeds & Flash Floods), Yellow, Blue and Green  Estimates.
                 (No hazard) Zones are marked on the coast of
                 India using the Tracks of Cyclones and radial  Integration of the Web Application
                 damage distances from tracks of cyclones are
                 derived from the paper "Some Characteristics of  with Insurance Company Portals
                 Surface Wind Structures of Tropical Cyclones over a) Underwriting
                 the North Indian Ocean", Journal of Earth    In today's world everything is on line. Hence the
                 Sciences, 124, 1573 - 1598.                  integration of the web application with the computer
             3. Storm Surge zones are marked on the coast of  portals of Insurance Companies is essential. It would
                 India as defined by INCOIS on the coast line and  give the Risk Assessment Report for client location &
                 sea water penetration on land is as given in IMD  its MPL Estimate which when linked with forecast of
                                                              Tropical Cyclones in the next 10 years would
                 reports.
                                                              recommend optimum premium for the client and this
             4. Probable decadal frequency of Tropical Cyclones  can be done from any of the offices of Insurer.
                 & their intensities for zones identified by IMD are
                 worked out using Stastical method.           b) Reinsurance

                                                              Web application, similarly will produce highest
             Web Application (Software)                       accumulation of MPL Estimate on a real time basis and
             The website TROPCYC developed by Unity Geospatial  help plan Reinsurance Strategy.
             LLP has classifies coast of India into Red (Extremely
             hazardous zone), Yellow, Blue & Green Zone (No   In addition to working out MPL & Accumulation of MPL
             hazard  Zone) and produces a Report on "Risk     Estimates the integrated web application would
             Assessment of Tropical Cyclone" (see sample copy of  provide following services:
             the report) at the client location identified by using  Y  Insurance Company can underwrite their Tropical
             Longitude & Latitude. The report tells the Insurer:  Cyclone business from any of their offices.
             Y   Whether the location of the client falls under Red/  Y  Loss preventions and customer education can be
                 Yellow/Blue/Green zone. It also tells the client  done effectively.
                 wind speed & rainfall he should expect during a
                                                              Y  In case of a cyclone, the application would
                 cyclone event.                                  produce list of clients likely to suffer damages and
             Y   How many cyclones & their intensities that may  it also can list the clients who would suffer severe
                 hit the client location in next ten (10) years.  damages. This can help the Insurance Company to
                                                                 arrange the Loss Adjusters and support the worst
             Y   Describes in general vulnerability of the property
                                                                 affected clients financially in a calamity. This would
                 and loss prevention tools available.
                                                                 go a long way in getting loyal& satisfied customers
             Y   The report supports the above by giving full    and marketing in future with mouth publicity at
                 history of weather disturbances and also major  no costs.
                 cyclones that hit the location from the year 1891
                                                              Y  Early sending of the Loss Adjusters to the clients
                 till today in a tabular form.
                                                                 would also help in reducing exaggerated/ fraud
             Maximum Probable Loss (MPL)                         claims.
             Estimates                                        c) Loss Prevention
             MPL is used for Underwriting and Reinsurance in  Loss prevention is an important aspect of service to
             Insurance business by whole of the General Insurance  the Insured. It is duty of Insurers to pass on the lessons


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