How to Prepare a Must Review Reinsurance Submission

1. How to Prepare a Must Review Reinsurance Submission AGRIP Spring Conference, 2003 Robert Jones – Genesis Underwriting Management Co. Mark Peterson – Towers Perrin Reinsurance Douglass Pfeifer – Berkley Risk Administrator Companies

2. How to Prepare a Must Review Reinsurance Submission • Pre-Market Submission • Market Presentation • Post Market Presentation and Monitoring

3. Pre-Market Submission • Information Gathering • Exposure information • Historical premium and loss statistics – segregated by line of coverage • Contractual information • Current reinsurance contracts and structures • Coverage Grants or Memorandums of Coverage • Financial Statements • Enabling Legislation

4. Pre-Market Submission • Analysis of Needs • Determine pool’s risk appetite for all lines of coverage • Identify unique member exposures • Identify catastrophic exposures • Actuarial analysis for pricing and retention purposes

5. Pre-Market Submission • Reinsurance Market Analysis • Which reinsurers entertain this type of exposure • Which reinsurers entertain this type of coverage • Renewal vs. new business relationship • Assessment of reinsurers’ ability and willingness to pay claims • Pooling peers

6. Market Presentation • Cover Letter • Summarizes opportunity and pool’s reinsurance coverage objectives • Includes highlights that address pooling and reinsurance issues: • Establishes time lines and critical dates (include board meetings and statutory requirements if any)

7. Market Presentation • Operational Summary • Who provides operational support for: • Historical performance and prospective outlook

8. Market Presentation • Historical performance and prospective outlook

9. Market Presentation • Pricing Information • Rating Model Example and how developed • By coverage line pricing guidelines: Reinsurance industry Customs and practices -or- Proprietary rating methodology with appropriate rationale

10. Market Presentation • Underwriting Information • In force underwriting guidelines • Material changes over prior periods and associated results • Anticipated future changes

11. Market Presentation • Pool Membership Profile • Property profile by type of occupancy • Property limits / TIV profile • Automobile usage profile • Population profile • Liability operations profile • Large deductible identification • In force special acceptances

12. Market Presentation • Coverage Requirements • Coverage grants / MOC’s • Unique characteristics of coverage • Mold and terrorism language • Anticipated coverage changes

13. Market Presentation • Transmittal • Thoughtfully organized • Electronic exposure data • Timely relative to established time lines

14. Post Market Presentation and Monitoring • Confirmation and follow-up contact • Reinforcement of time frame requirements • Early indications and impressions • Adjustments to structure and terms • Face-to-face meetings • Squeaky wheel theory: ’79 Chevy Chevette vs. ’03 Ferrari

15. Questions???