Predictive modeling is a process in which we develop a variability model based on a company’s loss data and risk profile and use this model to simulate ultimate loss outcomes. From these outcomes we can develop confidence levels which allow management to book to a higher or lower confidence level depending on their preference. Predictive modeling can be used in a variety of areas – from ratemaking to reserving; captive feasibility to enterprise risk management.
Typical Services Provided:
- Confidence Level Analysis
- Dynamic Financial Analysis (DFA)
- ERM Analysis
- Captive/RRG/Self-Insurance Feasibility
- Retention Analysis