Although Actuarial Science has done a great job in measuring possible losses of clients and industries, overdependence on stochastic and other mathematical modelling has, on occasion, proved counterproductive. Based on feedback from senior insurance professionals, these methodologies are often insufficient and inaccurate. As a result it produces insurance policies that are over, or under-insured.
Furthermore, accurate information about the company’s recovery-time-objectives (RTO) and its overall resilience is not assessed or determined by the Insurance industry but from the principles and discipline associated with Business Continuity Management (BCM). Data sourced from both the human element and systems, reflecting the status of an organisation’s operation, including supply chains, needs to be better understood and translated into meaningful management information. We intend to facilitate the exchange of such information that can be used for insurance, reinsurance, prudential and market-regulatory purposes. At this stage we will focus specifically on Business Interruption and Recovery Services.
Audeamus Risk platform with its BIAX module is not a “universal solution”; however the new approach does bring an entirely new quality and balance in today’s risk assessments that are influenced by subjective opinions or models that use simulated data whilst ignoring available and actual data. Reducing these misalignments and bringing uninsured risk in line with policies will produce substantial savings to all parties involved in the insurance cycle.
Insurance providers may decide to combine actuarial modelling in addition to the BIA data, but this is solely at the discretion of insurer, (i.e. for the policies that go beyond core recovery needs). Audeamus Risk’s intention in this phase is to connect the company with as many bidders possible in order to obtain objective pricing for the losses that can be firmly anticipated in a particular time frame.