Reinsurance strategy
The ability to articulate the risk-reward trade-off of different reinsurance strategies will be a key example of satisfying the Use Test under Solvency II, as well as improving risk management and the use of capital.
We can help you to optimise your reinsurance arrangements while maximising the effectiveness of capital use.
We combine dynamic financial analysis with a practical measurement framework to help insurers make well-informed and objective reinsurance decisions, including:
- developing an optimal reinsurance program design with respect to cost, capital and protection provided;
- analysing and communicating the impact of reinsurance treaties on the risk profile and profitability of the business;
- modelling the reinsured exposures (large claims, catastrophes, etc) in order to provide quantitative input to reinsurance negotiations; and
- advising on compliance with regulators' requirements, for example evidential provisions for reinsurance concentration.
We have experience in dealing with complex treaty structures, as well as the many qualitative factors which influence reinsurance decision-making..
