About Cytora risk scores
When using the Cytora Risk Engine you have access to the Cytora risk scores.
Cytora risk scores provide a relative measure of the risk of loss for use in commercial underwriting.
The scores are presented on a 5 point scale (A-D, F). An A-rated property is among the least risky commercial properties in the market, whereas an F-rated property is among the most risky.
External data consisting of millions of data points is structured, matched, and modelled alongside claims data to provide an accurate assessment of insurable risk. For each peril, individual risks (properties) are ranked and assigned a score (A-D, F), representing increased predicted loss cost among the population of all properties in the market.
Underwriting with Cytora risk scores
Cytora risk scores are available for different perils. The Risk Engine also issues an overall risk score for the policy as a whole, giving an immediate overview of the risk.
For a multi-site policy, underwriters will see policy-level risk scores plus individual peril risk scores for each site that makes up the policy. Risk scores are provided down to a building-level resolution allowing underwriters to investigate individual properties in a policy.
As Cytora risk scores are based on a population-scale ranking of commercial properties across all trades, the A–F scale is comparable across all commercial properties.
Where available, Cytora risk scores are accompanied by key drivers, which explain why a risk is assigned a particular score.
The Cytora risk score can be used in conjunction with a pricing model to adjust selection and pricing for each risk. Insurers control how the risk score interacts with the pricing model through the configuration layer.
Insurers can use Cytora risk scores:
- To augment underwriter decision making
When used at the point of underwriting, Cytora risk scores provide underwriters with accurate information that helps them to rapidly identify attractive, appetite-relevant risks.
- To automate e-trade underwriting
In a fully automated underwriting environment, the Cytora risk score can be used to inform selection, discounting, and loading strategies for quoting and binding risks.