The concept of Events Not In Data – ENID – is new in terms of terminology. It has also been called Binary Events. It refers to events that may happen in the future and then have a negative impact on the companies loss-ratio. The Low Frequency High Severity events is likely to be included here.
Asbestos was an example of a typical ENID. Nowadays since these are in the data other items will be in focus. Every insurer needs to consider their own specific risks. There are many ENID loading approaches, and it’s up to insurers to decide which one suits best. Indicative results based on market data shows a loading of around 3-5%.