Considering the uncertainties caused by the Covid-19 pandemic in economy and insurance and reinsurance markets, IRB Brasil RE, together with Aon Resseguros, is launching an exclusive tool that will allow insurers to analyze the risk exposure of their life and home insurance portfolios and technically estimate possible losses with claims. The analysis will also enable shaping custom-designed coverage products for the pandemic, meeting the expectations of the policyholders. The model is unprecedented in Brazil and was adapted for the reality of our country.
“We live an unprecedented moment and developing and offering a customed-developed modeling for our customers and their policyholders place us as the avant-garde. We secured a strategic alliance with Aon and shaped an exclusive solution meeting the needs of the Brazilian market”, says the chairman of the Board of Administration and acting CEO of IRB, Antonio Cassio dos Santos, adding that the novelty will also be available for the reinsurer’s customers in Argentina.
The modeling of the pandemic risk, as the tool is called, is a probabilistic model that quantifies the impact of the pandemic on the insurance portfolios, with a significant number of information. For it to be done, were used data from different countries in Asia and Europe, impacted by the coronavirus before Brazil, duly adjusted to the Latin American reality. Fed with data from each insurer, the solution allows making more realistic previews on possible losses for claims.
“We perform frequent adverse mortality modeling exercises for large customers. We structured, together with IRB, a tool that will allow the proper support to insurer to be given, adapting the model to completely meet thoroughly the needs of the life and home insurance portfolios of each company”, explains the CEO of Aon Resseguros Brasil, Antonio Jorge Rodrigues, highlighting that the company is a leader in the market of development of exclusive models.
The largest reinsurer in Brazil, with 37% of the market, IRB is a leader is the life and home insurance sectors. Since early April, the company created a crisis office, with the objective to monitor the insurance and reinsurance sectors and structure actions in response to the Covid-19 pandemic. “We analyze daily the market and potential scenarios in search of solutions to support the needs of our customers and business partners, enabling a more adequate management and greater planning”, highlights the Reinsurance vice-president of IRB, Isabel Solano.