Stephen joined Hiscox in 2009 and works within the London Market Property and Terrorism Divisions (Lloyds Syndicate 33). He is currently responsible for the company’s ‘Big Ticket’ property modelling for exposures domiciled both in North America and internationally, as well as Hiscox’s worldwide terrorism portfolio.
For Hiscox, catastrophe modelling plays an increasingly important role in both the pricing of individual (client) risks as well as at a group perspective. Hiscox endeavours to calculate its ‘group risk curve’ for various levels of loss and sources of loss (Japanese earthquakes, Florida windstorms, etc.) – how much would Hiscox pay out (on a gross and net basis) in a one in 5,10,20,50,100 or 250 year industry event (event loss to the insurance industry)?
The modelling/pricing Hiscox undertakes concerning a given client risk (on behalf of their underwriters), is solely based upon a given client’s submitted site values (with associated geographic locations). Whilst the quality of this ‘direct exposure’ is high (especially from Hiscox’s North American clients) it is rare that the company receives any detailed information regarding exposed CBI risk. As such, from a modelling standpoint, CBI is not explicitly factored into any of Hiscox’s work.
Internally Hiscox does attempt to quantify, on a line of business basis, the likely relative exposure of CBI from worldwide events. This is a highly subjective process based on the underwriter’s knowledge of each risk and that risks underlying lines of distribution.
Prior to working for Hiscox Stephen graduated with a Masters in Earth Sciences from Oxford University in 2008, after which he spent several months working in exploration mining in northern Quebec.