NEW YORK, May 29, 1997 — Buyers and sellers of property/casualty reinsurance can be confident about the accuracy of pricing for the coverage by using MILDSM, Insurance Services Office, Inc.'s (ISO) new software program that automates the analysis of increased limits.
Excess and umbrella writers, as well as insurers writing policies with liability limits greater than $1 million, can also save time and resources by using the advanced capabilities of MILD, which is designed for personal computers using Microsoft® WindowsTM version 3.1. or better.
MILD, which stands for Multi-Distributional Increased Limits Developer, was developed by ISO's new reinsurance division. "This powerful and flexible program enables insurance professionals to quickly look up increased limits on ISO tables or do a sophisticated customized analysis without replicating all the mathematical formulas involved," said Carole J. Banfield, ISO executive vice president - information services.
With just a few keystrokes on a PC, the MILD user can tailor an analysis by choosing various size-of-loss distributions, loss-adjustment-expense treatments and risk-load treatments. The user can chose different probability distributions such as Pareto, Weibull, Lognormal as well as ISO distributions." Any of the elements in the package can be varied to meet the user's individual requirements," Banfield said.
MILD also allows the user to view increased-limits factors by layer of insurance. These layers can be examined in relation to policy limits, self-insured retention, limited average severity, allocated loss adjustment expenses, unallocated loss adjustment expense, risk loads and other expenses.
MILD is available by subscription that includes any revised versions of the software and regular updates of the underlying data. Subscribers can attend annual MILD user group meetings where ISO experts will demonstrate improvements and new features, and users can exchange tips.
For more information about MILD, contact ISO customer service at 1-800-888 4ISO.