EQECAT to Develop CAT Model Possibilities

EQECAT Inc., an ABS Consulting company, has been selected by the National Council on Compensation Insurance (NCCI) to provide the modeling of workers’ compensation catastrophe losses. The selection of EQECAT was announced at the NCCI Annual Issues Symposium, held in Orlando, Fla.

EQECAT has advanced state-of-the-art workers’ compensation modeling by:

Revising earthquake-related death and injury rates by structure and occupancy types based on a detailed analysis of Kobe, Turkey and Taiwan injury and death data.

Incorporating NCCI and other loss data by state and injury type to enhance the accuracy of calculating insured losses.

Using currently available, improved employment and building stock data to enable credible analysis results by SIC and zip code, even when detailed policy data is unavailable.

EQECAT’s analysis of detailed claims data from the Kobe, Turkey and Taiwan catastrophic earthquakes revealed that previous industry studies may have greatly underestimated the workers’ compensation loss potential, in some cases by as much as an order of magnitude.