Client Results - Property
Secondary Modifiers
Reap Significant Savings for Retailer
A retail client was having difficulty getting their locations to complete the questionnaire containing secondary construction characteristics for catastrophe modeling purposes. The risk management department understood the potential value of this information however it was difficult to obtain. Beecher Carlson ran the Company’s catastrophe peril PML (probable maximum loss) using current available data and compared it to a simulated model that contained most of the additional information required – The simulated model generated a 28% percent reduction in exposure which translated into more than $1,000,000 in catastrophe peril premium load.Beecher Carlson partnered with risk management to present the PML studies to senior management and explained the importance of obtaining the necessary data. Once the potential economic benefit was quantified, senior management issued a letter of compliance to all store managers making the gathering of this data a priority.
The results: Beecher Carlson was able to negotiate lower catastrophe peril deductibles and reduced the client’s average account rate to its lowest level in the history of the client’s operations.
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