Ceding Company Considerations
Broker Service and CAT Models
Wanchin W. Chou, FCAS, MAAA
Liberty International
2006 Seminar on Reinsurance
New York Hilton
June 1-2, 2006
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Broker Service Quality
Accuracy of
Presentation
Creativity
Claims
Service
Local Office
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Broker
CAT
Modeling
Service
Reinsurance
Placement
Pricing
Backroom
Capabilities
2
The Adequacy Of Reinsurance?
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Reinsurance Needs
Geographic:
•
Where is the risk
located?
•
What are the
underlying
requirements?
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Reinsurance Needs (Contd.)
Catastrophe Loss:
•
Hurricane
•
Earthquake
Others
•
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Reinsurance Needs (Contd.)
Risk Exposure:
•
What type of Product? liability?
property? business?
•
Loss control environment
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Which CAT Models?
•
AIR, EQE, or RMS?
•
In House Models or Brokers?
•
Model Comparison
•
Accuracy & Prediction
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Achieving a Balance
Different Models
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Cost & Accuracy
8
Reinsurance Placement
•
Reinsurer Capacity
•
Know-how
•
Best deal?
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Other Considerations
•
Claims & Service
•
Creativity
•
Local Office
•
Backroom Capabilities
•
Brokers’ relationship with regional operation
•
Market Intelligence
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Questions ?
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