Insurance Analytics

Insurance Analytics within Harbor Group is a multidimensional discipline we apply to our evaluation of risk for our clients. There is extensive use of probable maximum loss studies, historical claims, loss statistics, comparables in the marketplace, descriptive techniques and predictive models to gain valuable facts and figures for our data analysis. Our advanced insurance analytics has also been built, in part, from closing over 100,000 deals and the ability to comp suggestions and outcomes to design the most efficient market solutions. The insights from proprietary data and the depth and breadth of our market experience are used to recommend action or to guide decision making for our clients in the deal process.

For new or existing insurance policies, Harbor Group can successfully quantify the risk and identify the exposure level based on our unique set of metrics, methodology, and experience to achieve the best results — keeping the protection and optimization of our clients’ collateral and/or assets as our focus, all while carefully considering the relationship dynamics of all parties involved.

In addition to analyzing the opportunities or challenges of existing insurance or risk financing alternatives, we strongly believe in engaging all parties in the transaction to gain a thorough understanding at every stage in the deal process. And we are with our client every step of the way – from initial engagement through closing and on to the secondary market transaction process, whether it be securitization or syndication.

We conduct the following analytical evaluation:

  • Adequacy of limits and broadness of terms & protective clauses
  • Blanket coverage, including concentration & limit aggregation issues
  • Catastrophic perils exposure, including PML analyses
  • Compliance with Federal Flood regulations
  • Financial strength of insurers, including ratings from Standard & Poor’s, Moody’s, Fitch, and AM Best
  • Deductibles and retentions
  • Necessity for specialty policies
  • Self-insurance & captive insurance programs

We provide following services prior to loan closing and post-closing:

  • Analysis of proposed or existing insurance and determination of coverage acceptability
  • Recommendations for additional coverage or negotiation of terms
  • Determination of insurance obligations and risk assumption/risk transfer by thorough review of existing and proposed contracts
  • Thorough review and comment to insurance provisions of the loan documents to properly memorialize ongoing insurance obligations
  • Procurement of evidence of required coverages and outlining of lender’s interests
  • Procurement of insurance premiums, including invoices and other relevant documentation for insurance escrows
  • Preparation of Insurance Risk Analysis, including detailed outline of approved coverage and any permitted exceptions
  • Explanation of coverage and analytical rationales to third parties in connection with secondary market transactions such as securitization, including rating agencies and investors, and syndication/loan sale
  • Securitization documentation review & comment and diligence requests.