GLOBAL LARGE LOSS DATABASE

Transcription

1 CRAWFORD GTS GLOBAL LARGE LOSS DATABASE A GRAPHIC INTRODUCTION

2 ABOUT THE GLOBAL LARGE LOSS DATABASE This booklet provides a high level overview of the Global Large Loss Database (GLLD), what it contains and what the data is used for. It is a strategic tool which consolidates existing claim data and unique fields or identifiers which classify loss records into Industry sectors, product lines and the perils that caused them. Approximately eighty-five percent of records are entered via interfaces with various time and expense systems such as CMS, BRS2, Prime and Cesar. This data is not only used for internal reporting purposes but also for strategic planning on a range of issues, such as succession planning and resource management. We trust that you will find this booklet informative, and welcome any questions you have regarding the GLLD. Kind regards, Dr. Andries G. Willemse SVP Global Technical Services Crawford & Company

3 CONTENTS Overview Adjusters Data Segmentation Catastrophe Our Client Base Statistical Forecasting

4 OVERVIEW The GLLD contains large loss records* from 2008 to present. Given the market success of our Global Technical Services (GTS ) division and the nature of the business, the database is never static, as claims are either added or updated minute by minute. The data is used for various internal and external reports as well as for strategic management purposes. 21,037 VOLUME OF CLAIMS BY YEAR CLAIMS 17,238 CLOSED 3,801 OPEN 2,187 2,645 3,364 3,617 2,752 2,685 2, ** $59.7 BILLION *** INDEMNITY DOLLARS (OPEN AND CLOSED CLAIMS) *Claims involving $500K or more indemnity dollars **2015 year to date ***Total value of indemnity dollars (USD) on open and closed claims combined from 2008 to date 1

5 ADJUSTERS GTS adjusters are leaders in their respective fields, having proven themselves in the industry. They become part of our GTS division through a balanced scorecard-based accreditation process which is applied and managed globally. It is based on industry and specialist experience as well as academic and industry qualifications TOTAL ADJUSTERS* INDEMNITY DOLLARS (USD) MANAGED BY REGION (IN BILLIONS) ASIA $8.47 CANADA $3.10 CEMEA $17.31 LATAM $7.87 PACIFIC $7.38 UK/IRELAND $9.51 USA $6.10 *As of Sept 30,

6 DATA SEGMENTATION 15 INDUSTRY SECTORS Agriculture & Food Building & Construction Engineering Marine & Transportation Mining Pharmaceutical Retail Telecommunication We have seen a marked increase in the number of high value Personal Lines losses in recent years. Similarly, Retail and Agriculture & Food losses have gained prominence over traditional industry sectors like Building & Construction and Industrials & Engineering based both in size and frequency Banking & Finance Cyber Risk Environmental Risk Media & Entertainment Personal Lines Power & Energy Technology 5 TOP 5 INDUSTRY SECTORS * 1,917 2, ,678 1,102 21,037 TOTAL CLAIMS MOTOR & AUTO 12,859 WC/EMPLOYER S LIABILITY/MED MGMT MARINE & TRANSPORTATION RESIDENTIAL PROPERTY CATASTROPHE LIABILITY COMMERCIAL PROPERTY PRODUCT LINES *Based on number of claims (open and closed combined) from 2008 to date

7 TOP 5 INDUSTRIES BY NUMBER OF ASSIGNMENTS 4755 Building & Construction 4162 Industrials & Engineering 2208 Retail 1760 Personal Lines 1870 Agriculture & Food Retail, Personal Lines and Agriculture & Food production have become sectors within which we are seeing not only a higher volume of claims but also higher individual claim values. CANADA PERSONAL LINES 647 UK BUILDING & CONSTRUCTION 964 ASIA INDUSTRIALS & ENGINEERING 1101 USA BUILDING & CONSTRUCTION 1255 LATIN AMERICA CARIBBEAN INDUSTRIALS & ENGINEERING 383 CEMEA INDUSTRIALS & ENGINEERING 1079 The USA leads Asia in having recorded the highest number of Building & Construction losses but it is worth noting that Canada leads Personal Lines and similarly, the UK leads Agriculture & Food production. PACIFIC BUILDING & CONSTRUCTION 989 TOP 5 INDUSTRIES BY REGION 4

8 PRODUCT LINES TOTAL INDEMNITY DOLLARS (USD) Commercial Property $37,064,024,862 Catastrophe $11,827,047,373 Liability $6,857,175,849 Marine & Transportation $1,894,737,329 Residential Property $1,245,645,022 WC/Employer s Liability/Med Mgmt $469,412,280 Motor & Auto $388,112,528 PRODUCT LINES BY CLAIM VOLUME* GRAND TOTAL $59.7 BILLION It is no surprise to note that Catastrophe claims represent the highest value of indemnity dollars in the database. When catastrophes occur in highly insured areas the insured losses are often total losses and in many cases these have associated business interruption claims *Note the correlation increases in commercial property and catastrophe losses in 2010 (Chilean earthquake) and 2011 (Thailand floods).

9 COMMERCIAL PROPERTY AND LIABILITY indemnity dollars follow a similar path in value over the years 2008 to date and so statistically remain in tandem. When we compare the number of losses and value of commercial to residential property the proportion remains fairly consistent by region and country. PRODUCT LINES AVERAGE TOTAL INDEMNITY DOLLARS (USD) Catastrophe $6,172,780 Commercial Property $2,898,798 Liability $2,569,193 Marine & Transportation $1,730,354 WC/Employer s Liability/Med Mgmt $1,122,996 Motor & Auto $1,018,668 Residential Property $743,669 $2.9 MILLION AVERAGE INDEMNITY DOLLARS PER CLAIM 6

10 PERILS Claims are classified by the proximate cause more than 25 in total. These include: Fire Collision Storm Theft Flood and more TOP 5 PERILS BY CLAIM VOLUME FIRE AND/OR EXPLOSION STORM FLOOD BREAKDOWN GENERAL & PUBLIC LIABILITY CLAIMS $3.58* $7.88 $5.32 $6.36 $6.39 $10.39 $8.37 $ *2015 year to date INDEMNITY DOLLARS ALL PERILS (USD IN BILLIONS)

11 TOP 5 PERILS NUMBER OF ASSIGNMENTS FLOOD GENERAL LIABILITY STORM BREAKDOWN FIRE CANADA USA LATIN AMERICA CARIBBEAN UK TOP 3 PERILS CEMEA ASIA BY REGION PACIFIC FIRE INJURY FLOOD ALL RISKS STORM GENERAL LIABILITY BREAKDOWN EARTHQUAKE 8

12 CATASTROPHE To provide exact statistics and performance measures associated with an event, we immediately start recording data under a specific event code, distinguishing between catastrophe and non-catastrophe claims. Events can also be compared to each other to measure severity and other factors CAT/ NON-CAT EVENTS CAT/NON-CAT BY REGION IN USD ASIA CANADA $1.5M $4.1B $4.3B $3.1B CEMEA $425M $16.8B LATAM $3.1B $4.7B PACIFIC $297M $7.1B UK $2.0B $7.3B USA $1.2B $4.9B 9

13 CAT EXAMPLES 2010 CHILE EARTHQUAKE INDEMNITY DOLLARS (USD) TOTAL $4.37B $30.99M $4.42B TOTAL CLAIMS THAILAND FLOODS INDEMNITY DOLLARS (USD) TOTAL $3.67B $117.7M $41.4M $3.83B TOTAL CLAIMS SUPERSTORM SANDY INDEMNITY DOLLARS (USD) TOTAL $488.4M $21.1M $509.5M TOTAL CLAIMS

14 OUR CLIENT BASE Our Client Base is fairly diverse. It includes reinsurers, global and local insurance companies and brokers as well as self-insured entities. * TOP 10 GLOBAL INSURANCE COMPANIES ** $11,020,709,912 ** 3,693 TOP 10 * GLOBAL INSURANCE BROKERS ** $1,760,165, ** * Source Insurance Information Institute ** 2008 to date 11

15 STATISTICAL FORECASTING Statistical forecasting remains a useful tool in many ways but is far from an exact science. We apply various techniques and standards to arrive at what we believe is an applicable standard for the claims industry. Based on historical data (2008 to date) plus other market factors, we form a view on future volumes and values (both for catastrophe and noncatastrophe work). Even though this information does not form the basis of day to day management decisions, we anticipate using it more as our accuracy improves. The chart below is merely a representation of CAT/NON CAT forecasting capability and therefore does not serve as a guide as the data cannot be interpreted in isolation. We are able to do the same analysis down to industry, product line and peril level. 12

16 FOR MORE INFORMATION CONTACT: Mike Reeves Executive Vice President Head of Global Technical Services Crawford & Company New London House 6 London Street London, EC3R 7LP Direct: +44 (0) Mobile: +44 (0) mike.reeves@crawco.co.uk Dr. Andries G. Willemse Senior Vice President Global Technical Services Crawford & Company 1001 Summit Blvd Atlanta GA Direct: Mobile: andries.willemse@us.crawco.com CRAW-GTS-GLLD-BOOKLET-0915