1 / 34

Aon Energy Course

Aon Energy Course. Wednesday 6 th July 2011. AIM. Introduction Underwriter & Underwriting Underwriting – Tools Conclusion. Introduction. Chris Walker – Who? Berkley – Who?. Underwriters & Underwriting. Underwriting. What is it?. Underwriting. What is it? Banking :

garth
Download Presentation

Aon Energy Course

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Aon Energy Course Wednesday 6th July 2011

  2. AIM Introduction Underwriter & Underwriting Underwriting – Tools Conclusion

  3. Introduction Chris Walker – Who? Berkley – Who?

  4. Underwriters & Underwriting

  5. Underwriting What is it?

  6. Underwriting What is it? Banking : the process of analyzing and structuring a proposed loan?

  7. Underwriting What is it? Banking : the process of analyzing and structuring a proposed loan? Insurance : the process of pooling of funds from many insured entities in order to pay for relatively uncommon but severely devastating losses which can occur to these entities

  8. Underwriters Define?

  9. Underwriters Define? People who take bets on something not happening?

  10. Underwriters Define? People who take bets on something not happening? People who collect premium and avoid paying claims?

  11. Underwriters Define? People who take bets on something not happening? People who collect premium and avoid paying claims? People who argue with brokers as to why they should not do something and then agree to do it?

  12. Underwriters My definition?

  13. Underwriters My definition? A person who is charged with exposing capital to risk with the aim of making a return on that capital.

  14. Underwriters My definition? A person who is charged with exposing capital to risk with the aim of making a return on that capital. This is done by :

  15. Underwriters My definition? A person who is charged with exposing capital to risk with the aim of making a return on that capital. This is done by : Profit = earned premium + investment income - incurred loss - underwriting expenses

  16. Underwriting Tools

  17. Underwriting Tools • Risk Identification / Selection : • Client types – analysis of types of clients in the risk pool. • Hazard – analysis of the types of hazards associated • Location – focus on region

  18. Underwriting Tools

  19. Underwriting Tools

  20. Underwriting Tools Product Offering :

  21. Underwriting Tools Product Offering : Cover offered – Property

  22. Underwriting Tools Product Offering : Cover offered – OEE,

  23. Underwriting Tools Product Offering : Cover offered – Construction

  24. Underwriting Tools Product Offering : Cover offered – Construction

  25. Underwriting Tools Product Offering : Cover offered – Construction

  26. Underwriting Tools Product Offering : Cover offered – Property, OEE, Construction etc. Point of attachment : Primary or excess.

  27. Underwriting Tools Point of attachment : Primary or excess.

  28. Underwriting Tools Line size choice: Underwriters perception of risk – how attractive?

  29. Underwriting Tools Line size choice: Underwriters perception of risk – how attractive?

  30. Underwriting Tools • Line size choice: • Underwriters perception of risk – how attractive? • Capacity: • Net • Reinsurance • Clash / Aggregations • Note : Relative size to other similar risks in portfolio.

  31. Underwriting Tools • External tools: • Reinsurance • Treaty • Reduce retention = opportunistic • Increased retention = volatility reduction (Relative size of capacity is not a good indicator of the size or health of the insurance company ) • Facultative Reinsurance • Opportunistic • Enables larger lines to be written on the original • Remove unacceptable parts of risk. • Broker • Leverage on & by brokers

  32. Underwriting Tools • Internal tools: • Benchmarking against: • Similar risks • Long term average • Actuarial average – set to allow adequate ROC. • Actuarial capital allocation – pricing. • Claims management : • Timely • Accurate • Understanding

  33. CONCLUSION • Underwriter & Underwriting • No longer a past time but a profession • Underwriting – Tools • Many and complex : • Risk identification and selection • Attachment point • Product offered • Line size • Risk lay off and retention

  34. THANK YOU

More Related