Climate change is a major worry for insurers at all levels, with each year warmer and more volatile than the last. Coupled with a trend toward urbanization of coastal areas, the risks to property and human life will only increase. Cyber risk is and will continue to be a significant challenge for which the industry lacks historical data. This makes pricing cyber risk policies particularly difficult. Technological changes present another source of uncertainty, with private innovation proceeding at a pace that governments can’t match. This introduces gray areas for behavior that make it challenging to assign liability. With Lumivero's solutions, insurers can run simulations of different scenarios to determine the likely outcomes of different decisions, so they can choose the level of reinsurance most likely to produce a positive outcome.

Insurers must assess the risks posed by customers to file claims, and they need the most precise information possible to make that assessment. Lumivero software solutions use quantitative data from existing case studies to run simulations so insurers can forecast likely outcomes and price policies to more accurately reflect risk as measured by real information. Balance acceptable premiums with the client’s financial ability and appetite to retain risk, and against the insurer’s needs for appropriate reserves and profitability.

Determine optimal strategies for clients, including types and levels of coverages and appropriate deductible levels. Assess whether, when, and to what extent to use reinsurance for larger risk categories or industries. Lumivero tools allow you to automatically transcribe interviews with consumers being asked feedback questions and runs precise analyses to heighten the credibility of qualitative research. Our tools also take the guesswork out of planning by assessing risk and forecasting alternative options, giving insurers a clear picture of what consumers think and how to respond to customer and industry needs.

Probabilistically forecast future insurance claims and losses in order to determine optimal reserves levels by using Monte Carlo simulation in @RISK to show all possible scenarios. Plus, with the ability to perform stress testing on high-impact, low-probability events, you can have all the information to make the best decision possible.

Understand the probabilities of incurring losses and the operational risks of self-insuring with risk analysis software that takes uncertain variables into consideration. Additionally, our tools help you assess the risk of allowing a third party to write business on its license in “captive cell” scenarios.