Reinsurance Design

Our personal, yet technically sophisticated, approach comes to the fore in advising our clients on their reinsurance arrangements. We have spent many years developing “optimisation” tools that support the identification of the best reinsurance programme for an insurer.

Our process is built upon our understanding of the risk profile and risk preferences of our clients, from which we are able to understand the relative balance between capital provision and the use of reinsurance. We are able to capture an insurer's risk preference through Aversion Functions that quantify their relative risk preferences, to support the analysis of the effectiveness of different reinsurance programmes.

We are then able to use Genetic Algorithms to develop and assess different reinsurance programme structures, and then identify the optimal (and most robust) options to choose. These assessments are based upon stochastic analysis that look across the range of potential outcomes, to determine the efficiency and effectiveness of a diverse range of options that would not be considered using a more traditional approach.