Do you think your territorial rating process is accurately reflecting geographic exposure? If you are like most insurers, you are missing competitive opportunities to better price risks at the territorial level.
Summit® can change all that. Instead of using county, city or street boundaries as territories, you can easily and efficiently build finer-detail geographic boundaries based on actual underlying experience. Summit supports new rating territories by smoothing and clustering your experience with various catastrophe models — whether hurricane, severe thunderstorm or earthquake. Specifically designed for ZIP code-defined data, Summit can also handle more refined data levels, such as census blocks or tracts.
Summit's smoothing feature provides you the flexibility to select the smoothing equation, credibility exposure and/or distance standard to specify how far to “reach out” to surrounding ZIP codes. You’ll also see how adding more information contributes to finer, more accurate smoothing of local data.
With Summit, you can develop and evaluate numerous sets of indicated territory boundaries by grouping or clustering areas of similar experience on a Visual Basic platform. You can also perform the clustering process using contiguous or non-contiguous areas based on dollar or percentage differences. The output then provides graphically-displayed diagnostics to determine the statistically-optimal number of territories. Summit also creates a variety of territorial scenarios in one run.