Company loss

Losses are calculated according to the type of analysis.

Market Share—Compute losses by multiplying the industry loss for each area¹ and/or subarea² by the market share for that area to give the company loss. This is done for all areas for which market share information has been provided, and then it is added together for each event.

Sums Insured—Compute the proportion of the Sums Insured (SI) that represents the replacement value contained in the Industry Exposure Database for a given subarea/area, then multiply it by the industry loss for that subarea/area. This calculation is done for all regions for each event; the result represents the total contract loss for that event.

Number of Risks—The number of risks information for a given subarea/area and LOB (# of risks) is found as a proportion of the assumed number of risks in the Industry Exposure Database multiplied by the corresponding industry loss.

Premiums—(U.S., Canada, China) Premium information can be used to determine the implied market share without using "rates" information. This premium information, which is entered as exposure, and is compared with a premium database from A.M. Best Premium Database to determine the proportion loss which should be attributed to the company. Depending on the peril under consideration, the corresponding take-up rate is used to net the losses in accordance with the proportion of contracts that cover the specific peril.

Rates—(Outside of the U.S. and its territories as well as Canada) Premium information is used together with user-specified premium rates to determine the implied company sums insured. The proportion that this sums insured is of the Industry Exposure Database is then determined and used to net the industry losses. The premium information is entered as exposures and the rates are entered via the Rates tab.

MPCI—(U.S.) Losses based on premiums for all crops. Estimates potential losses both before and after government protection is applied for weather-related crop perils (drought, excessive precipitation, freeze/frost, floods and wind but not hail) for the 48 contiguous states. For more information refer to topic MPCI analysis - United States.

MPCI—(China) Estimates potential losses to certain crops (e.g. corn, cotton, rapeseed, rice, soybean, wheat, forestry) grown in mainland China arising from drought, flood, fire, and tropical cyclone (wind and precipitation) events. For more information refer to topic MPCI analysis - China.

^* Area is commonly identified by state, province or CRESTA ID

^** Subarea is applicable to US and Canada only and refers to county-level.