At AM Specialty Insurance Company (ASIC), underwriting isn't just a process—it's our foundation. Built on a legacy of technical expertise and refined through years of real-world application, our underwriting model is designed to deliver consistent, superior performance in an ever-evolving market.
The Backbone of Our Model: Expertise Meets Precision
Our underwriting approach is rooted in two key principles:
Deep Portfolio Understanding: We dive into the complexities of every portfolio, analyzing trends, exposures, and nuances to make data-driven decisions.
Risk Exposure Analysis: Each risk is assessed with a meticulous eye, ensuring comprehensive understanding of potential exposures.
Originally crafted by Shevawn and Simon Barder, our model draws from their extensive London insurance market experience, particularly at Lloyd’s of London—a global leader in the excess and surplus (E&S) space. Over the years, we've adapted and enhanced this framework to align with modern market dynamics.
Continuous Monitoring: The ASIC Advantage
Our seasoned primary and reinsurance underwriters, supported by specialist analysts, continuously monitor our portfolios. This real-time oversight enables us to stress test for frequency, severity, and rate adequacy, ensuring optimal performance and sustainable returns.
From Submission to Success: Our Underwriting Process
Initial Proposal: Surplus lines brokers submit program proposals to ASIC.
Analytics Review:
Due Diligence: We assess submissions against AM Holding Company guidelines, evaluating risk appetite per business class.
Comprehensive Analysis: We review historical claims data, policy counts, and risk types, conducting triangulations over a minimum of five years.
Benchmarking: Submissions are compared to historical data and market trends, identifying deviations in frequency, targets, and projections.
Risk Profiling: A detailed profile assesses value, rate, and long-term viability, including NAT-CAT scenario modeling for geographic exposure management.
Underwriting Assessment:
Our underwriters evaluate program strategies, integrating analytical insights with current market conditions.
Proposals undergo rigorous review with management. Viable programs proceed to client negotiations; non-viable ones are declined with constructive feedback.
Ongoing Monitoring:
Post-implementation, portfolios are regularly reviewed against performance benchmarks.
We track claim frequencies, severities, and calculate gross loss ratios to maintain underwriting discipline.
Pricing & Strategy: Consistency is Key
Our pricing framework supports cycle management, capital efficiency, and risk mitigation, ensuring stability across market conditions.
Data-Driven Pricing: We analyze historical performance and current exposures to determine technical pricing.
Market Alignment: Regular assessments compare ASIC’s technical rates to market benchmarks, allowing for timely adjustments.
Model Integrity: Pricing models are regularly reviewed and updated, with underwriting rationales clearly documented.
Rate Monitoring: Staying Ahead of the Curve
Risk-Adjusted Tracking: We continuously measure rate changes across all business lines.
Holistic Review: Our methodology incorporates the impact of new and non-renewed business, ensuring comprehensive oversight.
Dynamic Adaptation: Underwriters monitor technical rate movements by contract, risk class, and territory, adapting to shifting market conditions.
Audit & Compliance: Accountability at Every Step
ASIC conducts regular internal audits and partners with external auditors to uphold transparency, compliance, and operational excellence.
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