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EQECAT to Develop Compensation Loss Costs Models
for Workers' Compensation Insurance Rating Bureau (WCIRB)
of California
April 3, 2002
(Oakland,
CA -) On March 15, 2002, EQECAT Inc. was awarded a contract
to develop the earthquake loss costs for the Workers' Compensation
Insurance Rating Bureau (WCIRB) of California. The loss
costs are to be incorporated into their rate filing later
this year. The September 11, 2001 terrorist attacks compelled
insurers to review the catastrophe loss potential of Workers'
Compensation Insurance over a more comprehensive range
of vulnerabilities including earthquakes, which like terrorist
attacks, occur without warning and can cause mass destruction.
EQECAT,
an ABS Consulting company, provides insurers with a way
to quantify and manage their risk more accurately. EQECAT
was selected because of their state-of-the-art earthquake
model and their demonstrated success in numerous rate filings
and securitizations. EQECAT's earthquake model successfully
passed rigorous public and scientific review during the
CEA rate filing process. The earthquake model was reviewed
by USGS, CDMG, several intervenor groups and independent
engineering organizations under the supervision of an Administrative
Law Judge of the State of California and was declared "State
of the Art." "This was one of the most important reasons
why we selected EQECAT" said David Bellusci, Senior VP
and Chief Actuary of WCIRB. "We knew that their model had
passed extremely rigorous independent reviews and that
gave us a strong feeling of confidence in the quality of
EQECAT's modeling capabilities".
The project
advances the state-of-the-art for modeling Workers' Compensation
earthquake losses by integrating a unique set of databases
to resolve many of the problems that limited the usefulness
of previous modeling efforts. EQECAT leverages a variety
of proprietary and publicly available databases to enable
vastly improved loss estimates by worker classification.
The data used includes building stocks and employment data
by ZIP Code, historical earthquake injury rates and historical
insurer losses by injury type based upon thousands of Workers'
Compensation claims. "We believe that EQECAT is doing the
most comprehensive assessment of Workers' Compensation
risk due to earthquake ever undertaken", said Dr. Mahmoud
Khater, SVP and Chief Technology Officer of EQECAT. "This
model will enable insurers and reinsurers to more effectively
rate and manage their Worker Compensation earthquake exposure."
EQECAT
now offers insurers the most advanced technology for quantifying
Workers' Compensation exposure to earthquakes for both
rate-making and exposure management.
EQECAT
Inc, an ABS Consulting company, is a leading provider of
global catastrophe management software and services specifically
focused on the Property and Casualty Insurance Industry.
ABSG Consulting
Inc., marketing under ABS Consulting, (www.absconsulting.com) provides rational
engineering-based solutions that blend state-of-the-art
technology with practical loss-control measures and innovative
risk-transfer options. Headquartered in Houston, Texas,
ABS Consulting is an affiliate of ABS, one of the world's
largest providers of classification services to the international
marine and offshore industries.
For more information, contact:
Robert Healy
Vice President & General Manager Sales & Marketing
1-510-817-3100 | rhealy@absconsulting.com
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