Reinsurance and Insurance

Syndicates in the Lloyd’s of London are required to submit a series of core and non-core market reports in agreement with guidelines set out by Lloyd’s that ensure profitable business planning and monitoring to safeguard their high standards of underwriting and risk management. Lloyd’s collects this data from the syndicates so it can gain a probabilistic view of syndicates’ exposures to natural catastrophes. This allows Lloyd’s to calculate a market view of natural catastrophe exposures used within the Lloyd’s Internal Model (LIM) for capital setting. There are two series of reports required quarterly and twice a year respectively. Read More

In an ever-changing reinsurance industry ripe with an influx of alternative capital and new competition, reinsurers have had to identify new ways to boost the profitability of their portfolios. One approach to enhancing the strategic planning process—portfolio optimization—assists underwriting and executive teams in determining how much share to allocate to each individual contract and in constructing reinsurance portfolios that balance maximizing returns while minimizing risk. In this post, let’s confront 6 myths about portfolio optimization and debunk them once and for all. Read More

Editor's note: This article originally appeared on Global Reinsurance.

From chatbots that streamline how insurance is being sold directly to customers and fully automated claims processing via mobile apps, to monitoring driver behavior to inform eligibility for discounted policies, it's no secret that artificial intelligence, or AI, is a disruptive technology that is here to stay, with many use cases that can be applied to the insurance industry. Read More

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