Case Study: Lloyd’s Syndicate achieves more accurate rail network risk pricing with Moody’s Analytics

How Moody’s RMS Analytical Services enabled a Lloyd’s-based insurer to zero in on the many exposures contained in a rail-network submission, to support more accurate pricing and risk syndication

The Lloyd’s Syndicate faced the challenge of modeling the complex risk of a 1,000-mile North American rail network. Traditional methods that treated the entire network as a single risk between two points provided limited insight into its numerous vulnerabilities. To achieve a comprehensive risk profile for more accurate pricing, the syndicate engaged Moody's Analytics and its insurance Analytical Services.

Moody's Analytics implemented a proprietary linear risk modeling methodology to break the network into its individual components, creating a detailed exposure map. This solution provided the Lloyd’s Syndicate with a far more granular understanding of the risk, including previously underestimated flood exposure. As a result, the insurer established more accurate premium levels, improved its risk syndication strategy, and gained the ability to quickly generate precise loss estimates for any incident location.

Lloyd’s Syndicate