Accelerate Credit Risk Management in the Insurance Underwriting Industry.
In today’s fast-paced world, insurers must act quickly to manage risks and minimize losses. Our tools can help.
Insurance Underwriting Solutions
The Growing Complexity of Credit Risk Assessments
To accelerate growth, insurance professionals need to understand unpredictable market conditions and act quickly to manage exposures and minimize potential losses. Today there is pressure to do more faster than ever before – and with limited resources – yet there are many challenges, including:
- Inadequate financial data for small- and medium-sized enterprises (SMEs).
- Limited experience building internal credit risk models.
- Lack of effective portfolio benchmarking across regions and sectors.
- Inconsistent model outputs (Credit scores, Pass/Fail, Good/Fair/Poor, and 2.4156%).
- A patchwork of platforms and workflow tools for underwriting teams.
Adopt a Best-In-Class Underwriting Approach
Using credit ratings only or simply monitoring counterparty financials, sentiment from news, and board/executive changes is no longer sufficient. A best-in-class approach considers a much broader set of data and draws upon a range of models and alerting capabilities to get it right. Capitalize on opportunities within new markets with innovative workflow tools and expansive data that help you easily assess the credit risk profile of public and private, rated, and unrated companies – including small- and medium-sized entities, worldwide.
Best-In-Class Underwriting Approach
Standardized Data and Methodology
Single methodology for credit risk assessment across rated/unrated companies, with predictive measures of default & objective method for calculating credit limits.
Process and Automation
Unified workflow/platform, portfolio risk visualization, timely alerts and “always-on” surveillance of key counterparties.
Further Key Risk Management
Comprehensive understanding of supplier risk profiles, assess country and macroeconomic factors, sustainability, climate transition, and physical risks.
Featured Credit Risk Solutions for Underwriters
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Evaluate Probabilities of Default (PDs)
Assessing potential defaults of private, publicly traded, rated, and unrated companies across a multitude of sectors can be especially challenging when there is little default history available to train models.
Credit Assessment Scorecards provide an industry-leading methodology that ensures consistency across analysts and regions by combining qualitative and quantitative factors to offer:
- An easy-to-use approach that draws on questions in a check-box style to identify key risks.
- An off-the-shelf “glass box” approach for situations with limited comparable default data revealing all inputs and outputs, with outputs calibrated to PDs from S&P Global Ratings proprietary default data accumulated since 1981.
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Track Counterparty Risk
Credit quality is expected to continue to deteriorate, especially impacting counterparties at the lower end of the ratings scale.
RiskGaugeTM enables users to easily assess credit risk, delivering:
- A one-stop shop for efficient analysis and monitoring of risk for 50+ million public and private companies around the globe.
- An advanced modelling methodology, sector- and company-level benchmarking, financial and macroeconomic factors, and geographic analysis.
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Understand Macroeconomic Dynamics
In a world of transition, tracking the evolving economic outlook is critical.
Economic Indicators and Forecasts provides a clear 360-degree perspective that brings global risks into focus, providing:
- Top economic predictions for the year ahead.
- An analysis of economic fault lines, geopolitical reordering, supply chain resilience, and resource security that form the backdrop for credit risk analysis.
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Be Alerted to Signs of Default
Managing downside risk in a timely manner is especially challenging for insurance professionals during periods of heightened market volatility.
Early Warning Signals (EWS), powered by RiskGauge, is designed to pinpoint entities that may default, showing:
- Colored flags that indicate riskiness based on a firm’s PD level and change from a previous period combined with a set of dynamic thresholds that account for the economic cycle.
- Red flags that signal the need for a deeper dive on financials, news, and key developments to confirm the signal and potentially reduce exposure.
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Maximize Efficiencies
Insurance professionals need efficiency tools that enable faster, more accurate analysis to eliminate the time-consuming process of manually inputting financial statement data into their tools.
ProSpread™ automatically extracts and spreads relevant data from PDF financial statements by leveraging Natural Language Processing combined with Optical Character Recognition, providing:
- The ability to upload documents in up to 10 different languages.
- An enterprise offering to connect systems via API/cloud-based solutions for pushing/pulling data.
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Take Training to a New Level
Top-notch training has become critical to laying the right foundation for learning complex workflows, which are essential in today’s competitive and volatile market.
Credit Learning Pathway supports on-demand training and development for credit risk specialists, providing:
- E-learning modules focused on financial and credit analysis.
- A program that utilizes the Credit Analytics suite of credit models and related platform to enable a seamless transition between theory and practice.
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Make Sector-Specific Decisions
The S&P Capital IQ Pro platform provides sector-specific data that allows you to quickly and reliably underwrite companies worldwide with data that’s extensively vetted and standardized across countries and industries. Detailed data ranging from our People dataset, to equity price changes and asset quality, are all offered on a single platform. Access to the S&P Capital IQ Pro platform allows you to:
- Review performance metrics of ceding insurers by state and line of business.
- Leverage our data-driven, original news content.
- Automate your modeling process.
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Analyze Peer-Pricing Factors
Analyze peer-pricing factors that give your company a competitive outlook. Discover specific personal lines programs written by cedents allowing you to get a clear view of the industry.
- Analyze cedent price changes to reliably create reinsurance pricing.
- Utilize our RateWatch tool to monitor cedent rate change activity.
- Review underwriting manuals via the Manual Library.
Insurance Underwriting Insights
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