ISO's MILD™ software provides a complete, self-contained exposure rating model you can use to perform the most sophisticated custom analyses of your casualty excess-of-loss reinsurance treaties. In a few keystrokes, you can take your analysis to a higher level without having to replicate all the mathematical formulas.
For example, you can tailor your analysis by choosing various size-of-loss distributions, loss-adjustment expense treatments, and risk load treatments. The flexible software lets you vary one element or many elements, depending on how you want to customize your analysis. With MILD, you can go from looking at your limits profile to completing your treaty pricing in minutes.
You can enter your own risk-load factors, or you can choose from a number of risk-load treatments based on industry data that ISO supplies.
Simply by pointing and clicking, you can access information on any of ISO's size-of-loss distributions from the general liability, commercial auto, or medical malpractice tables. Each table includes information on:
From the tables, you can define ALAE allocation and ULAE percentage, assign risk-load multipliers, or choose different revenue from the risk load. By editing the underlying assumptions, you can customize any of the ISO tables to fit the characteristics of the risks you reinsure.
MILD lets you view increased limits factors by any specified policy limit. By setting attachment points and limits, you can view information as it applies to specified layers of insurance. You can look at:
MILD will calculate the premium for each layer based upon the subject premium you supply. By summing up the layer premiums from the applicable tables, you can price an entire reinsurance treaty quickly and easily.
With MILD, you can even see how ALAE varies with size of loss by line of insurance.
With MILD, you won't have to do all the cumbersome calculations to get results for probability distributions other than ISO's. You can generate your own increased-limits factors based on data you submit. You provide loss levels, weights, and empirical cumulative distribution functions, and MILD instantly fits distributions to the data. You can choose Lognormal, Pareto, or Weibull distributions.
MILD performs the necessary calculations with your claims or loss data, so you can view the tables and layers based on your custom distribution. For added credibility, you can compare fitted distributions against ISO's distributions, based on industry data. This is an excellent feature for adding depth to your analysis and comparing results based on various distribution selections.
You can also quickly perform sensitivity analyses to see how treaties respond to ALAE treatments, risk-load options, and trends.
Because MILD is a self-contained rating tool, you can easily perform your entire rating analysis within the software application. You can also export any part of your analysis into spreadsheet programs such as Microsoft® Excel or Lotus® 1-2-3®. The compatibility of MILD with spreadsheet packages makes it easy for you to integrate your results into your increased-limits rating models.
The products in ISO's Reinsurance Package are available as a package or individually. For your needs that go beyond the scope of ISO's Reinsurance Package of products, ISO offers reinsurance consulting services. Talk to one of our experts to find out how we can help.