Oortfolio – What’s New?
The May 28th release of Oortfolio allows for the modeling of defense costs paid outside the limits of liability. Prior to this release, Oortfolio assumed defense costs are paid inside the limits of liability, meaning that the insurer’s exposure to defense costs and indemnity is no greater than the policy’s limit, no matter how much the insured pays to defend itself against liability claims. With this release, Oortfolio users can now model defense costs paid outside the limits of liability, meaning that the insurer will pay defense costs, no matter how large, up until the point at which indemnity payments exceed the policy’s limit. Except for some edge cases, the assumption of defense costs outside limits results in higher overall modeled losses than the assumption of defense costs inside limits. The release also allows users to omit defense costs altogether.
The Oortfolio data submission template has been revised so that users can specify whether defense costs are paid inside limits, outside limits, or not at all. The treatment of defense costs can be specified at the individual policy level (Data Template – Policy tab) or at the portfolio level (Data Template – Portfolio tab), with policy-level treatment taking precedence over portfolio-level treatment.
Users can also specify the treatment of defense costs within the Oortfolio application using company or industry underwrite mode.
Oortfolio – What’s Next?
Please see the article above about our model version 19a release in the fall of 2019.