Get Tracking - Exposure tracking for small insurers

In today's insurance market, exposure tracking isn't just a concern for global giants.

It's also critical for small and mid-sized insurers.

In fact, with the increased volatility of natural catastrophes, inflationary claims pressures and tightening reinsurance conditions, smaller insurers are arguably more exposed if they don't have effective tracking systems in place.

Why Exposure Tracking Matters

Even modest portfolios can accumulate risk faster than expected.

Without accurate tracking, insurers may unknowingly:

• Build up over-concentrations in high-risk regions (e.g., coastal properties vulnerable to cyclones or floods).

  
  

• Exceed reinsurance treaty limits without realising it, leading to uncovered losses.

  
  

• Underestimate accumulation risks across product lines, such as motor and commercial property.

When claims surge after a major event, inadequate exposure data leaves insurers scrambling, damaging financial stability and client trust.

Challenges for Smaller Insurers

Smaller insurers often face three main barriers to robust exposure tracking:

Data fragmentation

Policy and claims data may be stored across different systems, formats or even spreadsheets.

Limited in-house analytics resources

Many smaller insurers don't have a full-time catastrophe modeller or exposure manager.

Lack of simple reporting tools

Off-the-shelf solutions can be costly or over-engineered for smaller portfolios.

Practical Steps to Strengthen Exposure Tracking

The good news? Small insurers don't need multi million dollar platforms to make real progress.

A few practical steps can dramatically improve visibility.

Define key exposure metrics

Start with simple, business-critical measures (e.g., Total Insured Value by region and peril type).

Map high-risk zones

Use basic geospatial tools to visualise concentrations in cyclone, flood, earthquake or bushfire zones.

Set accumulation thresholds

Establish internal triggers for reinsurance review or underwriting restrictions when accumulation exceeds risk appetite.

Automate regular reporting

Even simple quarterly exposure snapshots can drive better decision-making.

Link exposure data to underwriting strategy

Underwriters should know when they're adding to peril accumulations.

Final Thoughts

For small insurers, exposure tracking is not just about compliance; it's about protecting balance sheets, negotiating smarter reinsurance deals and building long-term resilience.

It's a strategic advantage that can be achieved incrementally with the right focus, tools and guidance.

At Storm Strategy, we specialise in helping small and mid-sized insurers implement practical, fit-for-purpose exposure tracking solutions - without unnecessary complexity.

If you're ready to strengthen your exposure management and future-proof your portfolio, we'd love to help.