Our client is a re-insurer that underwrites insurance provided to commercial auto businesses.
One of their key needs is to ensure alignment of the reinsurance premia in line with the risk profile of the loan portfolios, which consist of commercial auto businesses with varying fleet ownership and behavioral profiles.
- Fatalities per power unit (owned by the business), are rare events. Standard regression methods are not ideal to capture this phenomenon
- For the analyses to capture events with a usable degree of accuracy, data must be sourced from beyond traditional internal sources. Geospatial data trends over time had to be used.