Examples from Our Analysis Change Impact - Your reinsurance cost depends on how your future results are perceived. • Adjusting rate change for exposure and deductible changes • Creating an as-if loss analysis to account for changes in guidelines • Modifying industry data to reflect your specif ic strategy Data Integrity - Sound decisions require an accurate picture. • Overstate auto exposure by repeating 6 month policies on a bordereau • Inconsistent coding of percentage and dollar deductibles • Lack of referencing underlying policy for supported excess/umbrella Facultative Reinsurance - Fac is a powerful tool for improving results, but requires a well thought-out plan. • Cost/benef it of treaty versus facultative for upper layers • Underuse of fac to effectively compete on risks larger than treaty capacity • Huge administrative burden due to lack of a coordinated strategy Per Risk Structure Review - Structure decisions should be based on an analytics framework built for purpose.
• Ineffective use of an annual aggregate deductible • Retention inconsistent with risk tolerance • Reinstatement terms are not optimized or based on metrics
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