A.M. Best and Paragon Reinsurance Risk Management Services To Create Industrywide Catastrophe Exposure Database.OLDWICK, N.J.--(BUSINESS WIRE)--Feb. 26, 1999--A.M. Best Co. today announced that it has entered an agreement with Paragon Reinsurance The contract made between an insurance company and a third party to protect the insurance company from losses. The contract provides for the third party to pay for the loss sustained by the insurance company when the company makes a payment on the original contract. Risk Management Services, Inc. to develop a comprehensive database of insurers' catastrophe exposures. Under the agreement, Paragon--an independent subsidiary of E. W. Blanch Holdings Blanch´ hold`ing 1. (Scots Law) A mode of tenure by the payment of a small duty in white rent (silver) or otherwise. , Inc., Minneapolis--will provide A.M. Best with an integrated set of catastrophe modeling
"Natural catastrophes have caused large insurance industry losses in recent years," said Eric M. Simpson, senior vice president of A.M. Best. "The traditional techniques of using market share and historical losses to assess catastrophe risk are no longer adequate. A comprehensive database will be a powerful tool for assessing aggregate catastrophe loss exposures, as well as an individual company's share of such losses." In keeping with its mission of being an "objective and constructive force in the prevention and detection of insurer insolvency," A.M. Best has entered this agreement with Paragon to provide information to aid insurers and regulators in addressing catastrophe risk, Mr. Simpson said. "We encourage all companies in the industry to participate in our initiative with the knowledge that all data shared with A.M. Best will remain strictly confidential," he added. A.M. Best will use Paragon's Catalyst(R) 3.0 model to analyze hurricane and earthquake exposures in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. . It also will provide a common platform for evaluating insurance companies' relative catastrophe exposure on a company-to-company and company-to-industry basis using a single benchmark model. "Using Catalyst 3.0 allows A.M. Best to ensure the consistency of exposure data and assumptions while enhancing our internal catastrophe risk analysis and leveling the playing field within our rating evaluations," Mr. Simpson said. "In addition, we would expect companies to maintain their current methods of risk analysis and mitigation, including continuing to perform catastrophe modeling on a regular basis." William Ashley This article is about the 19th century economic historian. For the U.S. Representative from Missouri, see William Henry Ashley. Sir William James Ashley (1860-1927), was an influential economic historian, operating in the latter part of the 19th century and the early 20th , executive vice president of Paragon, said, "This agreement with A.M. Best, the worldwide leader in insurance information and ratings, underscores the growing importance of a comprehensive, business-needs driven approach to analyzing catastrophe risk. We look forward to working with A.M. Best." About A.M. Best Company A.M. Best Co., the information source, offers comprehensive quality data to insurance professionals. Founded in 1899, A.M. Best became the first company in the world to report on the financial condition of insurance companies. Today, it provides quantitative and qualitative evaluations of insurance companies around the world. Best's Ratings Best's rating A rating A.M. Best Co. assigns to insurance companies based on the company's ability to meet its obligations to its policyholders. have become the industry's standard measure of insurer financial strength. As a full service rating organization, it recently began rating debt and preferred stock Stock shares that have preferential rights to dividends or to amounts distributable on liquidation, or to both, ahead of common shareholders. Preferred stock is given preference over common stock. Holders of preferred stock receive dividends at a fixed annual rate. securities issued by the companies it follows. For more information, visit A.M. Best's Web site, http://www.ambest.com. About Paragon Reinsurance Risk Management Services, Inc. Paragon Reinsurance Risk Services Management, Inc. was established in 1994 as an independent subsidiary of E.W. Blanch Holdings, Inc. (NYSE NYSE See: New York Stock Exchange : EWB EWB Engineers Without Borders EWB Electronics Workbench (simulation software) EWB Einzelwertberichtigung (auf Forderungen; banking, German) ). Paragon's experience and expertise originate in Verb 1. originate in - come from stem - grow out of, have roots in, originate in; "The increase in the national debt stems from the last war" analytical, consultative, modeling and processing of insurance and reinsurance services. As an independent entity, Paragon's objective is to be the industry innovator and to set the standards for risk-management services. About Catalyst 3.0 Catalyst 3.0 is a comprehensive software system used primarily for catastrophe-risk analysis for the insurance industry. The analysis results provided by the system can significantly support various phases of the catastrophe-risk management process, including identification and quantification of loss exposures and cost-benefit analysis cost-benefit analysis In governmental planning and budgeting, the attempt to measure the social benefits of a proposed project in monetary terms and compare them with its costs. of alternative risk-management techniques, such as loss prevention, loss reduction and risk transfer. Catalyst 3.0 is based on the state-of-the-art methodology techniques in risk assessment and the latest available supporting data. Catalyst 3.0 recently received certification from the Florida Commission on Hurricane Loss Projection Methodology. |
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