Episode 13: Double Exposure

Milton after Helene after Beryl. Our thoughts at Quotech are with all those who have suffered the impacts of these relentless storms. 2024’s Atlantic hurricane season has certainly lived up to predictions, with unprecedented damage caused by multiple high-intensity landfalls.

Underwriters with Florida hurricane risk on their books will have looked repeatedly to their exposure management systems for insight into the losses they can expect to have endured.

If their platform is state-of-the-art, it will be dovetailed with real-time weather-data feeds, and with satellite imagery that reveals the impact on the ground. As previously instructed through intuitive settings, it will automatically compare that up-to-the-minute data with detailed risk information about the individual properties insured and affected.

Such a system would then deliver real-time loss estimates to everyone who needed to see them, including even members of the Board, directly to their tablet or laptop. The frequency and content of those reports would be customised to the needs of the individual.

If it was a super whiz-bang exposure management system, it would understand that the same property cannot be destroyed twice. It would therefore eliminate the possibility of double count, a risk to which lesser platform could fall prey when hurricanes happen in similar areas in such rapid succession that no remediation or repair activity has had a chance to be completed.

With the right connections, a cutting-edge, best-in-class exposure management system like the one I'm imagining here would be linked to a treasury management function. That could be set to ensure that loss funds are adequately financed to guarantee that exactly the right amount of money is available to relevant brokers, almost instantly after the damage was inflicted.

Perfect information, seamlessly delivered, and an automated response, without the tiniest hesitation. Your exposure management probably can’t deliver any of that, but it’s probably not state-of-the-art.