Deciding how best to go about running additional analyses and integrating catastrophe modeling output into a reinsurer’s own internal analytics system is no simple matter, and the consequences of getting it wrong can be significant. According to McKinsey, 71% of large IT projects (those with price tags exceeding USD 15 million) face cost overruns, and 33% run at least 50% over budget. Read More
Historically reinsurers have had to invest heavily in developing their own proprietary IT systems. Much of this was driven by the fact that third-party solutions were simply not available in the marketplace. Over the past 10 years, the insurance technology landscape has been transformed dramatically, and reinsurers regularly confront the decision of whether it makes more sense to build their own proprietary system to solve a problem or purchase a third-party solution. Read More
It used to be that reinsurance portfolio roll-ups-combining the estimated probabilistic CAT losses from all the reinsurance contracts you write into one global portfolio displaying your business's overall expected loss and exceedance probability curve-were done annually because of the time and resources needed. But this traditional rolling up for the once-a-year snapshot of a business appears to be waning. At AIR Envision Europe 2017, we polled the room and found that only 4% of attendees are still rolling up on a yearly basis-65% are rolling up their global portfolios on a quarterly basis, and the remainder are rolling up even more often than that!
This raises the question, why are 31% of AIR clients now taking the trouble to roll up so frequently? Read More
A lack of major catastrophes in recent years (aside from this year), increased competition brought on by the inflow of alternative capital from investors, and the need to spend more time and resources processing increasing volumes of data are several of the key forces that have created today’s soft reinsurance market conditions. With combined ratios increasing and global property reinsurance rates online (ROLs) having declined for 11 straight years, describing the underwriting environment as “challenging” would be an understatement. Read More
Today's soft reinsurance market has put increasing amounts of pressure on traditional reinsurers to develop new strategies and tactics to survive. Combined ratios are increasing, and it's a sink or swim environment that can feel like a futile race to 100%. In this post we'll take a look at some of the forces that have created today's soft market conditions and connect them back to their effect on combined ratios. Read More
At Analyze Re, we are always looking for new ways to help our clients improve the speed and efficiency of their decision making processes. As such, we are happy to announce that clients who license Analyze Re, as well as AIR Products Touchstone® or CATRADER®, will now be able to export loss curves (Year Event Loss Tables, or YELTs) from Touchstone and CATRADER directly into Analyze Re in just a few clicks!
While we’ll continue to offer our clients multiple methods of getting data into our system with both automated and ad-hoc uploads, this new functionality built into Touchstone and CATRADER will add to this suite of upload capabilities, offering seamless integration through AIR’s user interfaces.