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In House Modeling Capabilities (RMS/RiskLink)

Many of our producers often ask "Why does Sigma Ask for so much information?"   Well, the answer to that lies in part with the "Hurricane Risk Modeling" process.   As part of the underwriting process, Sigma models each account prior to quoting using hurricane modeling software to accomplish the following:

• •Measure individual account impact on our Portfolio
• •Distribution Management – County / Zip Level
• •Establish operational metrics

Secondary modifiers are considered to reflect mitigation factors such as:

• Roof Geometry - (Hip, Gable, Flat etc.)Construction age - (Pre 1995, 1995-2001 or 2002 and newer)
• Roof Age - (0 up to 5 years),   (5 up to   10 years) or (10+ years)
• Roof Type - (Tile, Metal, Asphalt Shingle, Wood Shingle,   Built-up or Membrane)
• Hurricane Protection - (Impact glass or Hurricane shutters)
  Construction Class - (Frame, JM, NC, MNC, Fire resistive)
• Occupancy Class - (Apartments, Condominiums, Offices)
• Roof Anchorage - (Hurricane Straps, Clips)

Risk Distribution:

• Location - (Risk is identified to Zip or street level resolution / (Geocoding)
• Accumulation - (modeling assists in over accumulation)
• Reinsurance impact - (proper risk distribution impacts reinsurance costs)

Program Metrics:

Modeling each risk to a 100 or 250 yr. Stochastic storm event will provide the accounts Average Annual Loss or the predicted Hurricane loss.  Sigma adds each written account to a portfoilo of written risks that determine the Probable Maximum Loss with some certainty of a catastrophic event, such as a hurricane. The metrics of the portfolio are reported to our partners on a monthly basis.

Technology Tools:

• §Sinkhole exposure evaluation    
• §§Property valuation software
• Extensive use of MS office products
• Location mapping programs