Customize the risk amount for each peril.
To optimize insurance coverage for each business location and business phase, we perform a quantitative risk assessment for each insured risk using an estimated maximum loss (EML) or probable maximum loss (PML). It is essential that the calculation of estimated maximum loss is performed using the same criteria across multiple business locations and with other clients to maintain symmetry.
Our company uses EML and PML derived from our own calculation standards that conform to global standards to optimize insurance policy limits (policy limits) and per-period sub-limits (payment limits) according to the level of risk acceptable to our clients, thereby obtaining economically rational premiums from insurance companies. For large-scale projects, we identify the phases in which fluctuating risks are most concentrated and calculate EML and PML accordingly.
Especially when insurance companies have a low risk appetite, setting payment limits is essential to effectively utilize the limited insurance capacity in the market and maximize the efficiency of risk transfer. Furthermore, it is becoming increasingly important as a process to confirm whether the risks faced by customers are adequately covered, given the increasing trend in recent years of insurance companies setting sub-limits and imposing underwriting restrictions.