Reinsurance#

The reinsurance calculations generates estimates of retention and cession under the different reinsurance treaties. The following output files are produced:

  1. Reinsurance by event: aggregated estimated per event for the claim, retention, cession and overspills under each reinsurance treaty.

    event_id

    retention

    claim

    treaty_1

    treaty_2

    xlr1

    overspill_treaty_2

    year

    0

    738.429

    1833.73

    142.206

    400.000

    553.096

    180.819

    1

    1

    319.755

    701.219

    51.7092

    179.292

    150.463

    0.00000

    1

    2

    1226.97

    3210.91

    282.622

    400.000

    1301.32

    474.357

    1

    3

    1318.88

    3600.81

    294.502

    400.000

    1587.42

    629.187

    1

  2. Reinsurance curves: reinsurance loss exceedance curves describe the probabilities of exceeding a set of loss ratios or loss values, within a given time span (or investigation interval). The curves are generated for the claim, retention, cession and overspills under each reinsurance treaty.

    rlz_id

    return_period

    retention

    claim

    treaty_1

    treaty_2

    xlr1

    overspill_treaty_2

    0

    50.0000

    319.755

    701.219

    51.7092

    179.292

    150.463

    0.00000

    0

    100.000

    1226.97

    3210.91

    282.622

    400.000

    1301.32

    474.357

    0

    200.000

    1318.88

    3600.81

    294.502

    400.000

    1587.42

    629.187

  3. Average reinsurance losses: the average reinsurance losses indicates the expected value within the time period specified by risk_investigation_time for the claim, retention, and cessions under each reinsurance treaty for all policies in the Exposure Model.

    rlz_id

    retention

    claim

    treaty_1

    treaty_2

    xlr1

    overspill_treaty_2

    0

    1.80202E+01

    4.67333E+01

    3.85520E+00

    6.89646E+00

    1.79615E+01

    6.42181E+00

  4. Aggregated reinsurance by policy: the average reinsurance losses for each policy, by ignoring the overspill logic.

    rlz_id

    policy_id

    retention

    claim

    treaty_1

    treaty_2

    xlr1

    0

    p1_a1

    4.61304

    19.0934

    1.90934

    3.81867

    8.75232

    0

    p1_a2

    3.01643

    6.48621

    1.94586

    0.648621

    0.875298

    0

    p1_a3

    38.9468

    1.29823

    0.00000

    0.908759

    0.00000

    0

    p2

    3.57945

    19.8555

    0.00000

    7.94221

    8.33388

The parameters indicated in the previous outputs include:

  • policy: identifier of the unique policies indicated in the exposure model and policy files.

  • claim: ground up losses minus the deductible and up to the policy liability.

  • retention: net losses that the insurance company keeps for its own account.

  • cession_i: net losses that are ceded by the insurance company to the reinsurer(s) under treaty i. The cession is indicated by the treaty name defined in the reinsurance information.

  • overspill_treaty_i: net losses that exceed the maximum cession per event (“max_cession_event”) for proportional and/or catxl treaties.

NOTE: The sum of the claim is not equal to the ground up losses, since usually the deductible is nonzero. Moreover there could be “non-insured” losses corresponding to policies with no insurance contracts or that exceed the policy liability.