Page 7 - Risk Management Bulletin April -June 2021

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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