Loss scenario analysis

How confident are you that your insurance policy will respond as you expect if you have a large claim? How quickly will insurers pay? And will your claim be settled in full?

Conducting a loss scenario analysis will stress test your policy before a claim happens.

We work with you to develop loss scenarios based on your own risk mapping exercises. We analyse how the policy would respond in practice to the loss event and advise on the practical requirements/implications of the claim process. 

Our analysis measures the anticipated policy response against expectations, identifies any potential gaps in cover and considers policy sub-limits, indemnity periods, claims processes and protocols to smooth the claims process should a loss occur.

We can also benchmark the existing policy wording against wordings within particular industry sectors or more generally against the wider insurance market.

Conducting Loss scenario analysis will provide you with the following benefits:

  • Improved confidence in the insurance product
  • Clarity and understanding of its practical application in the event of loss 
  • Recommendations for improvement to the coverage
  • Early warning of potential problems or issues, before a claim happens, avoiding the potential for claim dispute or lengthy settlement process
  • A policy wording tailored to meet likely loss scenarios, providing greater claims certainty in the event that a loss is suffered
  • A foundation to build claims quantification models and claims protocols.