Is your reinsurance optimized?
After several years of rising property catastrophe pricing, many insurers are reviewing whether their reinsurance programs still deliver value. Optimizing reinsurance means finding the structure that best balances cost, capital relief and protection against volatility.
Common steps include analyzing the company's risk appetite, testing different retentions and limits, and comparing proportional and non-proportional structures. Models of expected losses and capital requirements help show the trade-offs between buying more cover and holding more capital.
An optimized program is reviewed regularly. Changes in the portfolio, the market cycle and regulation can all shift the best answer from one renewal to the next. For more detail, see our guide to optimal reinsurance.