Case Study: AXA XL improves catastrophe risk underwriting with Cape Analytics

AXA XL improves reinsurance pricing with Cape Analytics using 10 cedant portfolio tests

AXA XL, a division of the global insurance and reinsurance company AXA, faced the challenge of mitigating catastrophe risk by better understanding the quality of data in the portfolios they reinsure (from cedants). They sought to improve underwriting by incorporating accurate, property-specific insights that were previously missing. To address this, they turned to vendor Cape Analytics and its geospatial property intelligence service.

Cape Analytics provided AXA XL with up-to-date data on secondary risk modifiers, such as roof geometry and the presence of pool enclosures, at a portfolio scale. By integrating this data into their catastrophe models, AXA XL was able to quantify a significant improvement in the accuracy of their Average Annual Loss (AAL) calculations for ten test portfolios. This solution empowered AXA XL to achieve more accurate pricing with lower uncertainty, ultimately enabling them to better serve their customers.

AXA XL