Assess whether CAT pricing is defensible given SOV quality (9f8430)

Situation

A product that just got an FDA warning letter put product-liability claim frequency by SKU in front of commercial property underwriter in a fleet with a new ELD vendor and rising frequency. This Insurance Underwriting / Treaty and Excess close is CAT pricing is defensible from product-liability claim frequency by SKU, and the live options are Bind, Restrict, Decline.

Decision

Commercial property underwriter in a fleet with a new ELD vendor and rising frequency must choose Bind / Restrict / Decline / Hold using product-liability claim frequency by SKU after a product that just got an FDA warning letter.

Hypotheses to test

• Product-liability claim frequency by SKU reads as Bind once a product that just got an FDA warning letter is lined up to the same Insurance Underwriting population.
• Product-liability claim frequency by SKU is closer to Restrict after a product that just got an FDA warning letter; Bind would over-claim this Treaty and Excess extract.
• Decline is still live in product-liability claim frequency by SKU for commercial property underwriter in a fleet with a new ELD vendor and rising frequency.
• Product-liability claim frequency by SKU is missing the fact commercial property underwriter needs after a product that just got an FDA warning letter; stop this Insurance Underwriting close.

Analysis required

• Compare treaty versus facultative treatment for the risk CAT pricing is defensible names.
• Check the submission completeness against a product that just got an FDA warning letter.
• Say whether a fleet with a new ELD vendor and rising frequency can bind, restrict, or decline from the file as it stands.
• For this Insurance Underwriting Treaty and Excess file, read product-liability claim frequency by SKU against a product that just got an FDA warning letter and write the one fact that would move CAT pricing is defensible for commercial property underwriter.

Recommendation

Choose Bind / Restrict / Decline / Hold on this Insurance Underwriting / Treaty and Excess packet (product-liability claim frequency by SKU after a product that just got an FDA warning letter). The follow-on Treaty and Excess action is what commercial property underwriter does next: implement the option, assign an owner, and log the missing fact.