Our Independence. Your Advantage.

Analytics

Holborn’s message to clients is simple: “For Analytics, We start with you!” That’s our difference. We don’t create products and then seek a market for them. Our state-of-the-art analytical tools – including our Eye in the Sky sm catastrophe risk management program – evolved out of client demands.

Companies Analyzed, Solutions Customized

Market Risk
Singular Points of Risk
Enterprise Risk
Non-Cat Loss Analysis
Rating Agencies
Property Cat
Other Cat
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Market Risk
Holborn’s Reinsurance Security Committee (a select group of our senior managers across multiple disciplines) meets regularly to review the financial condition of each reinsurer. Each entity is closely monitored for financial and operational performance through meetings with management, rating agency activity and news releases. Our monthly newsletters keep clients informed of any noteworthy changes.

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Singular Points of Risk
Some risks have such devastating loss potential that, despite extremely low probability, they warrant additional consideration. For example, a catastrophic factory fire could lead to dozens of workers’ compensation claims and an extended business interruption claim.

Another example is the financial and operational risk that occurs when the senior management team and top agents all fly together to an offsite meeting. A prudent approach to risk management includes consideration of all potential clash situations, over and above those captured by experience-based models.

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Enterprise Risk
Success in an increasingly competitive environment requires a full commitment from everyone at every level of your company. But the rewards for all the efforts of underwriters, claims handlers, marketing reps, and accountants are in jeopardy if the entire risk landscape is not rigorously understood and proactively acted upon. Enterprise Risk Management describes a framework in which the short- and long-term value of a company is maximized through assessing, monitoring, and ultimately exploiting risks from all sources.

At the highest level these hazards are classified as underwriting (e.g., mass torts, cat losses, pricing disclipine), financial (e.g., credit and return risk), operational (e.g., reputation, product design), and strategic (e.g., access to capital, competition). Senior management must assure that all sources of risk are considered and managed to a tolerable level, particularly at companies subject to Own Risk Solvency Assessment (“ORSA”) compliance. Holborn’s broad knowledge of insurance and reinsurance operations is leveraged to identify and quantify these risks, maximizing the ongoing value of our business partners’ companies.

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Non-Cat Loss Analysis
It can be very challenging to discern whether changes in underwriting results are due to shifts in the underlying risk (parameter variation) or just normal randomness (process variation). Sometimes several changes can offset one another and produce seemingly stable results, masking the true dynamic. Holborn’s proprietary tools are designed to decompose the loss experience and measure it across multiple dimensions, thereby exposing and identifying emerging trends in order to provide a deeper understanding of our clients’ portfolios.

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Rating Agencies
One of the key objectives of an insurer’s operating strategy is to maintain a target financial rating. Holborn has extensive experience helping clients balance conflicting objectives of growth, profitability, investment returns, capital adequacy, and return on capital. Our Dynamic Financial Analysis (DFA) model enables clients to track these various performance measures and predict how various operational decisions can be expected to impact the company’s rating.

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Property Cat
By their very nature, catastrophic property losses can wreak havoc on businesses and personal property, as well as the balance sheet. Media coverage of the devastation from a hurricane or tornado often makes these events seem “unexpected.” Even though recorded weather history is relatively limited (on a geologic scale), it’s clear that outliers, storms of extraordinary magnitude, have occurred before and will again.

It’s not a question of “if” a large event will occur, but “when.” Taking a long-term view, we can help quantify the exposure and secure proper protection at the most efficient cost. We’ve developed a unique approach to analyzing property catastrophe risk that combines information from your portfolio and your experience with data from weather services and the latest science-driven vendor models. Senior in-house cat modelers, claim reviewers, and actuaries all work together to produce useful and practical guidance for managing property cat risk so you are prepared for any event…before it occurs.

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Other Cat
It shouldn’t be a surprise that some of the largest insured events we see are not property, but liability-driven. Losses stemming from workers’ compensation, mass tort, clash, runaway defense costs, product liability, and punitive damage judgments can quickly add up to amounts greater than most weather or fire damages. Holborn monitors the litigious US landscape, tracking the latest judicial rulings and regional and local hotspots.

Contract wordings are continuously evolving to stay on top of emerging risks such as cyber, intellectual property, and labor laws. Working together, we ensure that the proper coverage and limits are maintained. Clients get the benefit of our broad industry perspective, useful not only for reinsurance protection, but also for underwriting as well.

Frequently, clients tell us, “I’ve never seen this before.” And they haven’t, because we’ve customized our analysis specifically for them. Since our analytics are driven by client need, we use a combination of commercially-available and proprietary tools to analyze their exposures. The tools utilized for this purpose include experience and exposure rating, concentration studies, catastrophe models, post-catastrophe model analyses, dynamic financial analyses, rating agency support, peer studies and Eye in the Sky sm – among fully tailored and unique studies. We never settle for fast, easy answers to challenging situations.

We pride ourselves on taking a holistic view of analytics. Holborn believes that an optimal reinsurance program must be based on a comprehensive understanding of a client’s exposure, risk appetite and financial goals, which all starts with a trust-based relationship.

To that end, we spend time with our clients to ensure our models are reasonable, discuss assumptions and the projected implication of any decision. The key is our models’ open architecture, built by our senior actuaries and cat modelers working directly with client teams.

With this understanding, Holborn and our clients evaluate the cost-benefit of various reinsurance alternatives. Together we develop a strategy to achieve the most efficient protection to address the business issues at hand.

What Our Clients Know
“I think that consistency is very, very important. We see the same faces. We know who we are dealing with, and they know us. We are not explaining our story again and again. They’re bright people, and motivated. Holborn’s certainly got everything we need, and we know we can count on them.“
E. Timothy Hegarty, Jr., CPCU
 
President & Chief Executive Officer, The Norfolk & Dedham Group