Risk Modelling & Contract Pricing

Reinsurance placements have become more technical and complex because of the ever changing profile of the businesses being written by the Insurers. Hence computer based modelling of the Reinsurance Treaties is the way forward. Our expertise on the same involves the following services:

Evaluation of the current Contracts (Treaties)

  • Analyze cumulative contract performance - e.g 5 yrs Treaty Bouquet analysis
  • Review how the current contract will perform?
  • Provide alternative terms Analyzing the risk profile and contract structure
  • Review the risk profile and its bands and compare the exposure with the current contract layers
  • Adjust the contracts for the benefit of company
  • Evaluate the impact of reinstatement and aggregate limits

Contract Pricing

  • Analyze the expected loss of contract and fit the probability distribution
  • Transform/modify the expected loss in to market acceptable price

Advanced Value Added Modelling

  • Reinsurance Optimization
  • Dynamic Financial Analysis
  • Evaluate the impact of reinsurance protection on Capital, Rating Agency Capital Requirement, Regulatory Capital Requirement and Economic Capital Requirement