Underwriting Ring Accumulations

⬅ Knowledge Base Home

The Underwriting Ring Accumulation feature is submission-focused: it helps you evaluate the impact of adding new risks to your portfolio. It applies your specific underwriting guidelines—including rings, policy terms, and custom threshold criteria—to drive go/no‑go decisions at bind time. Download a PDF version of this Quick Start Guide.

We’ll cover:

• Ring Accumulation Basics
• Configuration
• How To Run A Ring Accumulation
• Visualize And Understand Results
• FAQs

Ring Accumulation Basics

SpatialKey’s dynamic ring model has 2 basic types: Magic Ring or Target analysis. 

The Magic Ring uses an approach that applies multiple overlapping rings (or concentric rings) radiating around your schedule location to calculate your peak accumulation within a chosen radius— including a ring centered around the prospective risk. Those rings are deduplicated and narrowed down, leaving one worst-case ring for each schedule location. The resulting ring is determined by calculating the greatest exposure from the schedule and portfolio locations that fall within it. 

The Target analysis centers a ring (or concentric rings) on the schedule locations and returns your exposure from the schedule and portfolio locations that fall within it. 

Ring Accumulations estimate exposure by calculating the total financial impact of all schedule and portfolio locations that fall within each ring generated by your chosen model (Magic Ring or Target). The analysis uses whatever financial inputs you supply—TIV, policy terms, or gross/net values—to determine accumulated exposure within that radius.

When assessing a submission, the model:

• Uses TIV or policy terms (if provided) for the new locations
• Uses policy terms, special conditions and facultative reinsurance for in‑force portfolio locations (when a portfolio is included)
• Calculates ground up, gross, and net for each zone using the best available data
• Compares the resulting totals against your capacity threshold to flag zones as over or under

If you have limited financial details, the model still returns the best exposure view possible, adapting its calculations based on the data you’ve supplied. In those cases, TIV or ground‑up values serve as a proxy for net exposure so you can still understand potential accumulation impact at bind time. See FAQs below for more detail on how the financial calculation works.

Configuration

Models can be created for your organization by contacting us and are configurable by the following: 

• Peril/Title: Terrorism or Flood are the most common but can be anything you’d like
• Magic Ring and/or Target Analysis: The Magic Ring finds the highest‑exposure using overlapping rings, while the Target analysis uses a ring centered on the location
• % Ring Overlap: Specific to the the Magic Ring option, the ring overlap defaults to 12.5% but can be adjusted up to 25%
• Radius: Single or up to three concentric rings 
• Damage factor: Applied per ring with a default of 100%
• Global Capacity Threshold: The exposed limit used to trigger an over/under indicator in the report (optional)

How To Run A Ring Accumulation

As submissions come to your desk, use Underwriting Ring Accumulation to analyze whether adding them to your book of business will create adverse concentrations of risk. 

1. Enter a single address or multiple addresses. 
2. Or upload a schedule of locations that has been prepared. To ensure optimal performance, schedules are limited to 5,000 records.
3. Optional: Enter insured values (TIV) for the data you want to analyze. When uploading a schedule, you will be able to select a column that represents insured value.
4. Optional: Enter policy terms for the prospective risk(s) you are evaluating.
5. Optional: Select in-force portfolio to understand the impact of adding the new location(s) to existing concentrations. You’ll be required to either choose a policy peril or TIV column from your portfolio. For the most accurate results, we recommend selecting a policy peril for the analysis.

TIP! For the most complete insights, we recommend running the analysis against your entire in‑force portfolio along with your new risks. However, you also have the flexibility to run it on your prospective schedule by itself. When your portfolio is included, the model can factor in policy terms, special conditions and facultative reinsurance. The analysis will still run effectively and adapt based on the amount of information you provide.

Note: You can configure and run as many accumulation models as needed. However, when running an analysis, you can select only one portfolio and one policy peril for the exposure calculation, and this selection applies across all models.

Visualize And Understand Results

1. If you ran more than 1 location in your analysis, you’ll initially see a summary of your schedule based on whether the new locations added enough exposure to existing concentrations to go over the threshold set for your organization. This view provides a high-level look at where to focus your analysis. 
2. Use the map to visualize schedule locations, colored by over/under your threshold. 
3. Click the report icon in each row or on the location point on the map to dive into each schedule location and see a zoomed in view of the accumulation along with a detailed list of all the locations, and your total exposure.
4. Each schedule location will display a detailed table reporting total exposure for all locations that fell within the ring broken down by new schedule locations and in force portfolio locations.
5. Export a CSV list of the locations that fell in the ring along with your total exposure.

TIP! Results can also be returned via API

FAQs

Understanding How Threshold Calculations Work

In-Force Portfolio Requirements

Prospective Risk Requirements

Troubleshooting Analysis Results