Reinsurance Advice ?

  • Optimise the reinsurance framework
  • Quantify the impact of the reinsurance strategy
  • Develop stochastic model for enterprise risk management

What?

Reinsurance is often a company's biggest single asset; its purchase is a strategic function with far-reaching implications for the whole operation. When carried out successfully, it protects a company's profitability as well as its stability.

To understand the reinsurance picture, we often recommend a 'granular' investigation - one that involves a line-by-line analysis of coverage. It is one thing to have bought reinsurance for a particular purpose, but you need to know precisely how it would work in practice and feed the information into your overall calculations.

When accompanied by a mapping out of inherent underwriting risk, it is possible to measure a company's total reinsurance needs and the price it should be willing to pay to acquire cover. How management responds to this information will, of course, depend on a range of other considerations such as willingness to retain risk.

Why?

To determine the optimal balance of risk and return for a wide variety of uses:

  • Reinsurance strategy
  • Economic capital modelling
  • Shorter and shorter product "time to market" lead times, in response to market demand.
  • Financial planning
  • Capital Allocation

To quantify the impact to the entire PML curve, the decrease in reinsurance limit needed, the cost of reinsurance purchased, and the impact on the company's retained net average annual loss.

To make risk-based strategic decisions with speed and flexibility employing a model to help you deliver powerful financial models

Who?

All insurance companies -life and non-life-, the captives, the different pools, portfolios in run-off.

How?

We help you to analyse risks, evaluate capital structure, test alternative strategies and deliver results in a concise and intuitive manner. In other words, it helps give clients the insight to make informed, strategic business decisions on complex risk issues quickly and efficiently.

We apply an award-winning dynamic financial analysis (DFA) modeling for capital modeling and enterprise risk management (ERM). With a stochastic and scenario-based simulation engine, we enable clients to analyse the whole spectrum of risk at a line of business, company, and group level for any size of business and any complexity of risk.

We develop the models by using one of the most performing tool in reinsurance, called Remetrica, Benfield's tool.

To Identify the Best Reinsurance Strategy, we like to work in different stages:

  • Collect Data: at the heart of any reinsurance-buying analysis lie good quality gross loss profiles for all classes and subclasses of business written; Map Risks: the next step is to capture, normally through the use of financial models, all the risks inherent in the business;
  • Model Large loss: we develop a stochastic model for large losses on an individual basis by considering separately frequency and severity;
  • Test Reinsurance scenarios: any reinsurance option can then be tested with regard to its impact on overall company performance and capital. This will measure the outcomes of any number of different reinsurance strategies, taking into account the security ratings and probability of default of potential reinsurers;
  • Review reinsurance strategy: the analysis might turn into a wholesale review of reinsurance strategy looking at, for example, combinations of changing aggregate deductibles, excesses, limits, reinstatements;
  • Decide on the best framework: armed with this information, management can then arrive at the best reinsurance framework, taking into account corporate priorities and the risk appetite.

The advantages of Elips Actuarial Services ?

Our experience

Elips actuarial services has a team of experienced actuaries in reinsurance framework.

Guaranteeing results

We offer undertakings on deliverables, budget and planning.

Project management

We can manage all the organisation, delivery and follow-up on a project

Know-how transfer - training

Elips Actuarial Services is the natural partner in this business case, due to our experience in similar projects. We can deliver the actuarial know how in a mixed management team of actuaries and risk managers. We can take the lead or work under a dedicated staff of your company. We can offer both a complete, or a specific projects service.

Elips Actuarial Services References

  • We have fulfilled the actuarial function for different captives and for a marine insurer
  • We have evaluated the underwriting risk by developing an internal model for a non-life insurance company
  • We have simulated reinsurance treaties for captives