The Propensity-To-Claim (PTC) Index is a relative risk ranking—not a probability. It’s best understood in the same way as a credit score: a number that ranks entities by risk, based on a range of underlying factors.
🔎 How is the PTC Index Calculated?
The index is generated using a combination of:
Climate patterns
Economic indicators
Land use
Geographic features
Vegetation productivity (i.e., how well the grass grows)
Each farm is assigned a score based on these inputs, giving you a comparative view of risk across different properties.
⚠️ Important: The PTC Index is Not a Prediction
The PTC Index is not a direct forecast or probability of a claim occurring. Instead, it's a ranking system that should be interpreted relative to other properties within a region or portfolio.
Just like a credit score doesn't guarantee a default, the PTC Index doesn’t guarantee a claim—it indicates likelihood relative to other farms based on the inputs.
✅ How to Use the PTC Index Effectively
The PTC Index is most powerful when:
Used within a specific region to compare customers and establish a baseline.
Analysing a portfolio to identify clusters of higher or lower claim risk.
Tracking shifts over time as new climate or claim data is integrated.
If you’re comparing properties across Australia, it’s best to look at local context rather than relying on national averages.
📌 Quick Reference Guide (Use with Caution)
While not recommended as a universal rule, a rough guide for interpretation might be:
Below 0.2 → Lower likelihood of claims
0.2 – 0.4 → Moderate likelihood
Above 0.4 → Higher likelihood
These should only be used when no regional context is available.
📈 What’s Next?
The PTC Index will continue to evolve. As we gain access to more claims data and better understand long-term trends, the model will become increasingly valuable for risk analysis and benchmarking—not for prediction, but for measuring uncertainty and understanding patterns.
Still have questions? Reach out to us at customersuccess@dasintel.io or click the help button for support.