Ceding Company Considerations Broker Service and CAT Models

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Ceding Company ConsiderationsBroker 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
CAT Modeling Service
Creativity
Broker
Reinsurance Placement
Claims Service
Pricing
Local Office
Backroom Capabilities
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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

Cost Accuracy
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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 ?