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A.M.BestTV: Risk Model Expert Karen Clark Explains "Characteristic Events"OLDWICK, N.J. --(Business Wire)-- In this A.M.BestTV episode, Karen Clark, principal at Karen Clark & Company, explains why insurers and risk managers should look beyond traditional loss analysis and consider identifiable characteristics of catastrophe events. Clark discusses a tool companies are incorporating into their risk modeling, called Characteristic Events. This metric uses the same data underlying in catastrophe models, but "the probabilities are based on the hazard": the methodology is specifically created to represent characteristics of an event for targeted regions for a selected time frame. "The event doesn't stay the same; the probability of that event stays the same," said Clark. "So the CE methodology does something that PML (probable maximum loss) approach does not do: to clearly identify where a company has exposure concentrations and where they have hot spots." Click here to view the video program: www.ambest.com/v.asp?v=clark814. A full-length interview with Clark is also available at www.ambest.com/v.asp?v=clark814a. Recent episodes of A.M.BestTV include:
A.M.BestTV covers exclusive A.M. Best information and reports, targeted topics and key developments in the (re)insurance industry every Monday, Wednesday and Friday. Sign up for alerts of episodes at www.ambest.com/multimedia/ambtvsignup.html. View A.M.BestTV episodes at www.ambest.tv. A.M. Best Company is the world's oldest and most authoritative insurance rating and information source. For more information, visit www.ambest.com. Copyright © 2014 by A.M. Best Company, Inc. ALL RIGHTS RESERVED.
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