Craig Robinson
Reinsurance Sales Engineer
StoneRiver
It’s that time of year again … time to renew your reinsurance contracts. With reinsurance rates hardening again due to so much catastrophic activity this year, it’s more important than ever to make sure you have the proper reinsurance programs and terms in place. Small changes can mean big differences in results. What is the best way to do this? It can be a really difficult process, wading through a huge volume of experience data and analyzing contract terms.
But there are tools that simplify this complex effort, giving you the ability to change terms while automatically modeling data and testing results. The tool? A ceded reinsurance administration system that has modeling tools that let you experiment with new programs, terms and conditions and inuring relationships. Modeling allows you to enter direct premium and loss data within the production database and to perform reinsurance attachment and calculation processing without impacting any financial results.
Modeling provides the ability to perform "what if" ceded reinsurance analysis. Modeling of premium and loss entries of your choosing are processed through reinsurance attachment and calculation processes. Various combinations of the terms and conditions of a reinsurance program as well as the subject premium and loss data can be run through multiple test iterations allowing you to analyze and predict results. All these specifications allow you to narrow down the types of data, as well as the attachment criteria to include in the modeling cycle. Multiple users can enter their own modeling data, and submit their own modeling cycles independent of each other. This provides flexibility in controlling which data is used for any given modeling cycle.
The proper technology is very important for insurance companies to manage their reinsurance more effectively and make decisions more quickly. This is better accomplished using systems that enable you to build predictive models and present the results for easy analysis to help guide your business decisions. Would this type of a tool be one that could greatly enhance your reinsurance programs and improve your bottom line results? Let me know what you think.