Delivering 20% Reduction in Operating Costs and 18% Efficiency Uplift for Fortune 500 Insurer with CAT Modeling Automation

Client Overview

A leading Fortune 500 Property and Casualty (P&C) insurance provider, recognized for its comprehensive portfolio of risk management solutions and its longstanding reputation for innovation, financial strength, and customer-centric service. The company serves a diverse client base across commercial and personal insurance markets.

The Challenge

Modernizing CAT Modeling to Unlock Underwriting Speed, Scalability, and Market Advantage

The insurer’s catastrophe (CAT) modeling operations were heavily reliant on manual workflows, creating significant inefficiencies and bottlenecks in the underwriting process, particularly for high-value, high-risk CAT products. As demand for CAT modeling services accelerated, the company struggled to consistently meet service-level expectations, leading to missed underwriting opportunities, longer cycle times, and elevated delivery costs.

The absence of automation not only hampered operational efficiency but also constrained the insurer’s ability to scale its modeling capabilities to match market growth. Without modernization, the organization risked losing competitive positioning in a segment where speed, accuracy, and responsiveness are critical to success.

Sutherland Solution

Transforming CAT Modeling Operations Through Intelligent Automation and Data Science Expertise

Sutherland collaborated with the insurer to deploy a comprehensive strategy centered on intelligent automation:​

1. Deployment of the CATS Assessment Platform
   Sutherland implemented its proprietary CATS Assessment Platform, designed to standardize and accelerate the modeling of a wide range of perils, including earthquakes, floods, hurricanes, hailstorms, and terrorism events. This platform enabled the insurer to transition from fragmented manual workflows to a unified, efficient, and scalable CAT modeling process, dramatically improving consistency and throughput.
   
2. Integration of Skilled Data Scientists
   To ensure high-fidelity modeling and enhance analytical rigor, Sutherland engaged a team of seasoned data scientists with deep expertise in CAT modeling. These specialists played a critical role in overseeing platform implementation, validating model outputs, and continuously refining methodologies to support greater accuracy, reliability, and underwriting confidence.
3. End-to-End Process Automation
   Sutherland fully automated the CAT modeling workflow, eliminating manual interventions that had previously introduced delays and inconsistencies. Through intelligent automation, the end-to-end process — from data ingestion to model generation and delivery — was streamlined, significantly accelerating turnaround times and empowering underwriters with faster, more reliable risk assessments.

The Outcome

Enhancing Efficiency, Reducing Costs, and Accelerating CAT Modeling Delivery

The implementation of intelligent automation across CAT modeling operations delivered substantial and measurable business improvements. The insurer realized a 20% reduction in overall operating costs and achieved an 18% increase in operational efficiency, reflecting the impact of streamlined workflows and reduced manual intervention.

Notably, 93% of CAT models were delivered within just two days, dramatically improving the insurer’s responsiveness to market demands and enhancing broker satisfaction through faster, more reliable risk assessments. These outcomes strengthened the organization’s competitive positioning and reinforced its ability to deliver timely, high-quality underwriting support in a dynamic risk environment.