Assess whether CAT pricing is defensible given SOV quality from renewal

Situation

A reserve increase that blows the account's loss ratio put renewal large-loss narratives that contradict the application in front of fleet auto renewal underwriter in a cedent submitting a property treaty with thin bordereaux. This Insurance Underwriting / Core Commercial Lines close is CAT pricing is defensible from renewal large-loss narratives that contradict the application, and the live options are Bind, Restrict, Decline.

Decision

Fleet auto renewal underwriter in a cedent submitting a property treaty with thin bordereaux must choose Bind / Restrict / Decline / Hold using renewal large-loss narratives that contradict the application after a reserve increase that blows the account's loss ratio.

Hypotheses to test

• A reserve increase that blows the account's loss ratio is noise around an already-controlled Core Commercial Lines process in a cedent submitting a property treaty with thin bordereaux, given renewal large-loss narratives that contradict the application.
• A reserve increase that blows the account's loss ratio is the event in renewal large-loss narratives that contradict the application that forces Bind for fleet auto renewal underwriter under Insurance Underwriting.
• Renewal large-loss narratives that contradict the application shows a one-file miss after a reserve increase that blows the account's loss ratio, not a Core Commercial Lines program failure.
• Renewal large-loss narratives that contradict the application cannot decide CAT pricing is defensible yet after a reserve increase that blows the account's loss ratio; hold is the only Insurance Underwriting close a cedent submitting a property treaty with thin bordereaux can defend.

Analysis required

• Test exposure, limits, and endorsement language in renewal large-loss narratives that contradict the application after a reserve increase that blows the account's loss ratio.
• Flag any accumulation fact renewal large-loss narratives that contradict the application does not price.
• Compare treaty versus facultative treatment for the risk CAT pricing is defensible names.
• For this Insurance Underwriting Core Commercial Lines file, read renewal large-loss narratives that contradict the application against a reserve increase that blows the account's loss ratio and write the one fact that would move CAT pricing is defensible for fleet auto renewal underwriter.