hyperexponential and Swiss Re: Hazard risk within pricing

We recently shared that hyperexponential is partnering with Swiss Re Reinsurance Solutions to unlock rich NatCat data and insight at the point of underwriting for insurers. But how does this integration work? What value does the partnership unlock for insurers? 

We explored all this and more in our recent webinar. In the session, hyperexponential’s Rachel Harper and Josef Schindler were joined by Zi Yang Choon, (Senior Pricing Manager - Global Corporate & Specialty, Aviva) and Ali Shahkarami (Global Head P&C Solutions, Swiss Re). 

Read on for all you need to know, including Aviva’s experience integrating CatNet®.

What is CatNet®? 

With natural disasters only becoming more frequent and more severe, integrating the best NatCat data into your pricing is more important than ever. CatNet®, Swiss Re's global location intelligence tool, allows you to do exactly that. 

With CatNet®, you can assess and visualise natural hazard exposure for any location in the world. Now featuring a new global hail layer and Fathom flood maps, CatNet® empowers pricing actuaries and underwriters to select, underwrite and manage risk within seconds. 

Ali Shahkarami, Global Head of P&C Solutions at Swiss Re said "By seamlessly integrating CatNet® data into hx Renew via an API, we are empowering underwriters to make better pricing and risk selection decisions, manage accumulations more effectively at the point of sale, and deliver an enhanced user experience through automated processes.” 

How does the integration with hx Renew improve your pricing workflows? 

Automation efficiency gain 

Previously, underwriters had to navigate multiple tools, manually extract exposure data, and cross-reference schedules of values (SOVs) with CatNet® insights. With this integration, all relevant exposure data is automatically extracted from SOVs and consolidated in hx Renew at the click of a button. 

Moving from a more manual workflow to streamlined data ingestion reduces the risk of human error, improving data quality and the depth of data available. 

Enhanced accuracy and risk assessment 

Moving beyond workflow efficiency enhancements, this integration ensures risk assessment directly informs the technical pricing. Users will now be able to differentiate their pricing based on highly localised, precise risk factors, rather than broad assumptions. They will be able to apply specific adjustments based on the actual exposure at the defined longitude and latitude, and automatically adjust base rates. 

This level of granularity ensures a more accurate and equitable pricing strategy. 

Automated governance 

It may not be glamorous, but it’s just as critical. Automated governance ensures best practices are followed. These include validation rules to identify inaccuracies, and referral criteria embedded directly within the system. Underwriters receive automated alerts of these necessary referrals. 

Rules can be built in to triage risk and identify which risks should be referred to other functions for additional analysis. 

Competitive advantage 

Together, these benefits represent a real differentiated edge in the market. 

With hx Renew’s flexibility, insurers can structure their risk assessment and pricing models in a way that aligns perfectly with their unique pricing strategies, empowering them to respond rapidly to market changes and emerging risks. 

Voice of the customer 

Yang Choon from Aviva joined the webinar to discuss why his team were excited about the integration, which they are currently looking to implement. “With data accuracy, when anything is manual, that always opens up the opportunity for potential data errors,” he said. “We’ve built multiple guardrails and validations within hx Renew to mitigate these errors, but for me, the ideal scenario is still to automate this connection completely to eliminate manual copying. That seems to be achievable with this integration.” 

And, as a pricing actuary, “Data is always the most exciting aspect to me!” Yang is excited to “unlock a wealth of new data points,”, allowing Aviva to continuously improve and iterate. 

See the integration in action

Want to learn more? Watch the full webinar on demand here.