Business interruption is a critical, global problem and insurers lack the tools and data to manage it.
Insurance companies need accurate data and analytics to select, price, and underwrite business interruption risk. Historically, they rely on proxies like property damage ratios to assess business interruption risk which consistently fails due to a lack of insight into the disruption that emanates ‘outside the fence’ of an insured property.
One Concern estimates there is a $1.5 trillion gap for corporates and insurance companies due to business interruption risk. Insurers are unaware of the depth and breadth of their insureds’ vulnerability to downtime risk, and are consequently unable to effectively manage their insurance portfolios. The current models of assessing business interruption risk provide a false sense of security, and in doing so, further expose insurers to an ever-changing landscape of risk. New tools and data are needed to better deploy capacity and mechanize new risk transfer solutions.
The missing metric of business interruption is Downtime. Downtime is not driven from building damage alone, but from the fragility of the external infrastructure upon which a property relies called Dependency Risk. One Concern can deliver this data through Business Interruption Risk Scores power by One Concern’s digital twin and AI-driven risk models, we provide risk-level intelligence into the dependencies to which an individual business is exposed.
- 1C DominoAI BI Risk Metrics™ provides a pure scoring of BI risk to accelerate decisions in underwriting, pricing and portfolio management.
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