propalloc is an R Package housing the codebase for the Oliver Wyman R Shiny Property Allocation Demo Application.

Purpose

The goal of this project is to create a model in R Shiny that allocates an insured’s prospective year property insurance costs in an equitable, easily understood manner that saves the client time, provides the option to use an “actuarial” methodology, while still allowing for maximum flexibility and edits.

Team

Project Leader: Adam Lewis
Developer: Jimmy Briggs
Support: Jack Reardon and Reza Milani
Peer Reviewer: Brian Settle

Demo

To demo the app, you have a couple of options:

If you want to run the application locally, simply install the package and run the code below:

library(propalloc)
propalloc::run_app()

Note that the run_app function will automatically install package dependencies for you.

Or to view a live test version of the shiny application running on the Oliver Wyman shiny server here.

Resources

View all package documentation by installing and running:

propalloc::open_docs()

Documents

Changelog
Contributor Code of Conduct
License
View the Contributing document for on-boarding resource.
View the Roadmap for schedule and planned future actions.

Installation

propalloc is setup as an R Package making it simple to house all the various dependencies that the final application relies on.

Make sure you have the latest and stable version of devtools.

BitBucket

Install from BitBucket via:

library(devtools)
devtools::install_bitbucket("owac/property-allocation-shiny-app",
                            "<username>", 
                            "<password>")

For example, if your username is john.doe@oliverwyman.com and your password is password123 you’ll run this code:

devtools::install_bitbucket(
  "owac/property-allocation-shiny-app", 
  auth_user = "john.doe@oliverwyman.com", 
  password = "password123"
)

Your bitbucket password may be different than your windows password. Your username is probably your Oliver Wyman email address.

GitHub

Install from GitHub via:

For information on setting up your GitHub PAT (Personal Access Token) visit this webpage.

library(devtools)

# using username/password
devtools::install_github("jimbrig2011/propalloc",
                         "<username>", 
                         "<password>")

# using GitHub PAT
# library(usethis)
# usethis::browse_github_pat()

devtools::install_github("jimbrig2011/propalloc",
                         auth_token = github_pat(quiet))

If you have any trouble, contact Jimmy Briggs to make sure you have read access to the repository and for further troubleshooting.

Technical

This project is set up as an R Package. To view important details regarding the setup visit the Technical API Vignette.

It also utilized GIT LFS. To install run git lfs install in git bash.

Scope of Services

Upon completion, this model will be used as a demo to sell future work, similar to the R Shiny casualty cost allocation model. Once sold, this model will provide a template for billable projects.

Specifically, the property allocation model will allocate the premium, taxes, fees, surcharges and any related costs (collectively, the “property insurance costs”) to the desired level. This level can include up to six hierarchies (e.g. Country, Business Unit, Division, Region, Location, and Intra-location Department).

The tool will enable the client to incorporate the following criteria into its allocation process:

Total Insured Value (TIV)
Market AOP Rates (provided by Marsh or Client)
Market CAT Rates
Wind Tier
Earthquake Exposure
Flood Exposure
Terrorism Rates
Claim Frequency
Claim Severity
Risk Engineering Credits/Surcharges
Other Manual Adjustments
Relativity Adjustments
Combustible vs. Non-Combustible
Sprinkler Type/Status
Business Unit (BU)

In addition, the model will allow a client to select various thresholds and caps on premium/rate changes.

The tool will also provide multiple summaries, facilitating the comparison of the resulting allocation in up to three different scenarios. For example, the client can compare the resulting to allocation based upon: proposed market rates without adjustment, rates used in the prior year allocation, proposed increases for budget guidance applied to the rates used in the prior year.

The tool will also give the user the ability to:

Edit the TIV, properties, or other aspects of the exposures in the statement of values (SOV) between the scenarios outlined above (this is of importance as information often changes throughout the allocation process)
Force the final allocation for a specific or a set of specific locations to be a fixed number
Change the different loss severity buckets considered in the model
Add extra fees after the allocation is complete, while still maintaining the allocation of the other property insurance costs

Lastly, the tool will provide a summary by any combination of the six hierarchies that will calculate the dollar change in premium attributable to any of the following:

change in TIV,
change in the initial implied rates,
claims charges,
manual “all other risk” adjustment, and/or
cap placed on the increase in rate and the resulting off-balance associated with a cap.

Company Policy

Contributing

Please note that the ‘propalloc’ project is released with a Contributor Code of Conduct. By contributing to this project, you agree to abide by its terms.

Circulation or Publication

This model is not intended for general circulation or publication, nor is it to be used, quoted or distributed to others for any purpose other than those that may be set forth herein or in the written agreement pursuant to which this model has been issued without the prior written consent of Oliver Wyman.

Third Party Reliance and Due Diligence

Oliver Wyman’s consent to any distribution of this model (whether herein or in the written agreement pursuant to which this model has been issued) to parties other than CLIENT XYZ, does not constitute advice by Oliver Wyman to any such third parties and shall be solely for informational purposes and not for purposes of reliance by any such third parties. Oliver Wyman assumes no liability related to third party use of this model or any actions taken or decisions made as a consequence of the results, advice or recommendations set forth herein. This model should not replace the due diligence on behalf of any such third party.

Public Dissemination

Neither all nor any part of the contents of this model, any opinions expressed herein, or the firm with which this model is connected, shall be disseminated to the public through advertising media, public relations, news media, sales media, mail, direct transmittal, or any other public means of communications, without the prior written consent of Oliver Wyman.

Avoiding Tax Penalty

The actuarial findings contained in this model are not intended to be used, and cannot be used, by the taxpayer for the purpose of avoiding tax penalties that may be imposed on the taxpayer.

Property Allocation