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Insurers operate within a dynamic and highly regulated environment that can make
profitable growth and increasing return a complex task. The in-depth knowledge of a company's catastrophe risk
profile that a CLAS™ analysis provides, combined with a detailed understanding of the insurance market,
enable AIR consultants to help
clients identify regions of high risk and areas for potential growth.
Identification, assessment, and precise quantification of catastrophe risk form the basis of AIR's portfolio optimization analyses. The detailed loss information obtained in analyzing a client's exposures is used to develop a formal optimization plan involving two phases: establishing the conceptual framework and creating and applying AIR's mathematical optimization model. This is a highly collaborative process between client and consultant and requires the expertise of both to properly define a company's objectives and address business issues such as growth, stability, solvency, feasibility, and profitability. For example, profitable growth can be constrained by market factors and costs that limit a company's ability to modify its portfolio of exposures quickly. Taking into consideration all of these issues, AIR can deliver a template for optimal diversification of a company’s portfolio.
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