Insurance analysis
Purpose
Insurance analysis compares the modeled physical-damage losses of an asset with its insurance program. Use it to find hazards where the cover can be too small.
Inputs
| Input | Default |
|---|---|
| Property policy: limits, deductibles, exclusions | A default property policy with limits set for a 200 MW plant. Replace it with the actual policy. |
| EAL and PML for each hazard | From the physical-damage model. |
| PML return period | 100, 200 or 500 years. |
Method
For each hazard, the analysis compares the modeled loss with the policy:
- Coverage status: Covered, Covered · Ded. (covered, with a deductible) or Excluded, under the policy in use.
- Surplus: policy limit − PML.
- Loss ratio: hazard EAL ÷ asset value. This is not claims divided by premium.
Outputs
Coverage status, policy limit, surplus and loss ratio for each hazard. See the Metrics dictionary.
At each scale
| Scale | What runs |
|---|---|
| Screening | Only the illustrative Insurance Premium on the asset Profile (see below). |
| Asset-specific | The full comparison for one asset, with the default or the actual policy. |
Illustrative premium
The Insurance Premium on the asset Profile is a premium for the 100 MW reference plant, scaled to the asset’s capacity. It is not an insurer’s quotation.
Parametric cover
Performance Assurance supports parametric risk-transfer structuring with hazard-loss exceedance curves. Contact the InfraSure team for access.
Limitations
- Coverage labels do not confirm cover under the asset’s actual contract. Check the actual policy wording and limits.
- Surplus is a simple difference. It does not show the amount that an insurer will pay.
For all limitations, see Limitations.
Version
Applies to methodology version 1.0, September 2026.