Reevaluating Excess Casualty Protection as Liability Losses Increase

If you haven’t purchased substantially higher limits, the net effect could be a reduction in the value of your excess casualty insurance policies.

Basic peer benchmarking — based in large part on assumptions that competitors are making informed decisions — will not adequately protect an organization from sizable casualty losses. Instead, organizations can optimize their excess casualty insurance programs by making use of more advanced analytic-based decision support tools.

Despite the significant rise in litigation costs over the past several years, you may not have increased casualty insurance limits to match cost inflation. If you have not purchased substantially higher limits, the net effect for your organization could be a reduction in the value of your excess casualty insurance policies. In “Reevaluating Excess Casualty Protection as Liability Losses Increase,” we explore how insurance programs have been affected by the rise in jury verdicts and overall litigation costs over the past 10 years.

In addition to discussing why relying on traditional peer benchmarking may not be sufficient and how advanced analytics can help you to ensure you are buying the right limits, we cover:

• How to determine the likelihood that your company will suffer a catastrophic casualty that will trigger umbrella and excess coverage over the next 12 months.
• How to determine the potential cost of a catastrophic loss.