1 / 17

Goals of CAMARES

Goals of CAMARES. Monitoring the state of the most important cat markets CatXL price levels and cover structures Cat exposures and market environment Development over time and outlook Optimizing Swiss Re Group’s cat capacity allocation. Concept of CAMARES. Data collection:

mimir
Download Presentation

Goals of CAMARES

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. Goals of CAMARES • Monitoring the state of the most important cat markets • CatXL price levels and cover structures • Cat exposures and market environment • Development over time and outlook Optimizing Swiss Re Group’s cat capacity allocation

  2. Concept of CAMARES • Data collection: • All Swiss Re divisions: Integrated in standard cat reporting process • Worksheets with quantifiable CatXL data for each market: GNPI, cover limits, realized rol, risk rol, cat exposure, etc. • Worksheets with mainly soft (not quantifiable) data for each market: changes in the market, estimations of market premium volume and proportional business, etc.

  3. Concept of CAMARES (cont.) • Determination of: • Market average of price elements (realized ROL, risk ROL, loading on line LOL) • Reference loss(es) for most important cat loss potential(s) per market • Market average of cover elements (deductibles, covers, exit points) set in relation to reference loss • Return on capital per market

  4. CatXL cover bought in major markets, 2000 (CHF m)

  5. Realized premiums per market, 2000 (CHF m)

  6. CatXL cover bought, all markets combined (CHF bn)

  7. CAMARES reference losses 2000

  8. earthquake Market coverage in relation to reference loss

  9. windstorm Market coverage in relation to reference loss

  10. Cat insurance and reinsurance losses 1999

  11. Evolution of price levels (CAMARES index) USA UK

  12. Evolution of price levels (CAMARES index) All markets combined

  13. Evolution of realized ROL and risk ROL

  14. Outlook • global cat rates? • some reinsurers bankrupt, others showing high losses for 1999 • shrinking retrocession market • commitment to capacity reduction?

  15. Cat market cycle

  16. CAMARES 2000, main conclusions: • World-wide overall non-proportional cat covers continue to grow • Price decay has stopped and slightly reversed, albeit at widely unsatisfactory levels • Swiss Re’s own book of covers is outperforming market benchmarks and has further improved in this respect.

  17. Risk Management and Capacity Allocation by Swiss Re • Groupwide integrated risk model (GRACE) • Overall risk measured by shortfall • “Component risk” determined via marginal contribution (Euler principle) for each peril • Required margin per peril derived from component risk

More Related