Our Experience with Reinsurers
Reinsurance has many unique challenges that set it apart from primary insurance companies. Report lag, heterogeneous experience, limited data, different patterns coming from different clients or contract types… we understand these important differences and have the experience to provide the accurate analyses you need to make important decisions. That’s because Taylor & Mulder actuaries have worked for some of the largest reinsurance companies in the world. Now, as consultants, we’re now able to use that knowledge to help you meet your actuarial project goals.
Our Services for Reinsurers
Our actuaries are involved in analyzing complex reinsurance contracts, pricing reinsurance and reserving for reinsurance. Taylor & Mulder professionals review, interpret and analyze reinsurance contracts as to the impact on pricing or reserving. Taylor & Mulder assist reinsurers in reinsurance pricing using experience and exposure rating for excess of loss treaties. We evaluate and compare different reinsurance strategies and their financial implications, perform financial analysis (including solvency and capital requirements) and planning, conduct total profitability studies (gross, retrocession, net), and give loss reserve opinions. We provide expert opinions on the required ceded and/or assumed reserve levels.
We perform analyses of reinsurance contracts with respect to compliance with standards set for by the National Association of Insurance Commissioners (“NAIC”) as set forth in Chapter 62 of the Statement of Statutory Accounting Principles (“SSAP 62”) and Financial Accounting Standards Board (“FASB”) Standard 113 (“FAS 113”) with respect to risk transfer.
Taylor & Mulder’s reinsurance experts are also equipped to evaluate and measure the impact of swing-rated provisions in reinsurance contracts including evaluation of the appropriateness of loss development factors contained in the contract (or alternatively mentioned in the contract but not actually contained in the contract). We can ascertain appropriate levels of collateral required under the contract (whether funds withheld, trust funds, LOCs, etc.).
Our evaluation includes the business consequences of the reinsurance agreements as well as the financial implications by providing ‘what if’ analysis for a variety of financial conditions. We analyze reinsurance agreements as to their effect on the financial well-being of the retroceding and assuming companies.
Taylor & Mulder provides assistance with commutation and loss portfolio transfers and determines the financial effect of such transactions. We have experience with arrangements such as pooling, fronting, and portfolio transfers for property and casualty insurance companies and reinsurers. We have the capability to accurately calculate premium adjustments and retrospective premiums for property and casualty insurance companies and reinsurers.