Creative Use of Data + Experience + Curiosity = Moving Past the Status Quo to Unimagined Solutions for identifying fire losses.
Many carriers are currently challenged by significant increases in the frequency and severity of fire losses in their personal and commercial books of business. MCA’s client was having similar fire-loss challenges with their Homeowners book of business but was struggling to find any insights within a $20M line of business.
To determine the root cause of the trends, the client had been using traditional methods to review results. As has been done for decades, these included looking at historical loss ratio analyses based on univariate cuts of rating variables—construction type,