Company market share analysis
Use cases for producing a Touchstone Re company market share analysis.
Before You Begin
In this use case, Safety Insurance has provided you with UNICEDE/2 files that include market share information. The company cannot provide you with detailed exposure data. You must:
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Determine the market share that the book of business comprises.
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Design a reinsurance program to mitigate your potential losses.
Procedure
In this scenario, you might take the following high-level steps:
- Create the Safety Insurance company.
- Import the UNICEDE/2 files that the company provided.
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Create one or more reinsurance programs for the company, ensuring that, on the
Program Options tab, you:
- Specify the Exposure Set you imported for the company as a target.
- Select Specified Market Shares in the Use list for the target.
- Run a loss analysis on the reinsurance program you created.
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Review the results of the analyses to determine the program that best mitigates your
potential losses.
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Touchstone Re compares company exposure data to Verisk industry exposure data to compute the company's market share.
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Touchstone Re multiplies the market share by the industry loss for each area or subarea, line of business, and event to calculate losses.
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Market share analyses cannot account for the geographic distribution of risks in a subarea. For example, if risks in a subarea are concentrated near a hazard, Touchstone Re might underestimate losses for the subarea. Consequently, Verisk recommends performing company loss file analyses instead, whenever possible.
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