Reinsurance Class of Excellence

Upon completion of this course, you will

• Discuss the impact of important contractual clauses in the insurance/reinsurance wordings on claims to understand potential misinterpretations.
• Define Nat Cat risk pools, detect industry challenges in the changing risk landscape, observing the development of second perils in underwriting and know how Nat Cat risk premiums are calculated using probabilistic or base-rate approaches.
• Allocate and compute premiums and claims in various accounting systems and see the effect when these are accounted for under the different/relevant type of reinsurance treaty both proportional and non-proportional.
• Understand how the different triggers on an insurance policy dovetail with the reinsurance contract to impact the tail, recognise the importance of reserving for bodily injury and latent claims and how these are handled through different calculation methods.
• Investigate your company's reinsurance requirements comparing the various reinsurance solutions, such as traditional covers, structured reinsurance solutions, the impact of IFRS 17 on your current programmes and other solutions.
• Recognise and assess how data can offer new opportunities for your company to grow business.

To successfully navigate this course, you have

• Experience of placing a reinsurance programme & calculation of premiums, costs and losses under the different types of reinsurance contracts.
• Familiarity with reinsurance clauses which may have an impact on claims.
• Understanding of functions and interactions of quota share, surplus, working excess of loss and catastrophe excess of loss treaties.
• Awareness of your company's needs with respect to reinsurance and other solutions.
• A solid underwriting know-how.

Agenda:
Monday, 25 September, 08:30 a.m. – 08:30 p.m. CEST
Tuesday, 26 September, 08:30 a.m. – 05:00 p.m. CEST
Wednesday, 27 September, 08:30 a.m. – 04:30 p.m. CEST
Thursday, 28 September, 08:30 a.m. – 05:30 p.m. CEST
Friday, 29 September, 08:30 a.m. – 03:00 p.m. CEST

The event may be photographed, videotaped, filmed and /or digitally recorded. You consent to Swiss Re's use, free of charge, of any memorialization of the event in which you may appear for any Swiss Re publication or promotional purpose.

Welcome, introduction to programme and getting to know each other
To kick off the programme we will start with a meet and greet of the participants, followed by an overview of the content and timing of the programme.

Impact of contractual clauses on claims
There are some clauses used in insurance/reinsurance contracts which may cause some disputes. In this session, we will discuss some of these clauses to understand their impact on claims as well as to reflect on potential differences between insurance and reinsurance.

Natural catastrophes – the reinsurance perspective
We dive into the world of (re)insuring natural catastrophes. We will talk about the various perils and approaches to calculate risk premiums. Probabilistic models are complex tools that we want to make understandable, without going deep into technical details. We will discuss relevant model inputs, assumptions, and see why underwriting expertise remains indispensable. We also touch on the changing risk landscape, including the role of climate change and other macro trends.

Reinsurance technical accounting
This training provides an overview of reinsurance technical accounting, covering the basic reinsurance agreements (Facultative/Treaty) and explaining its different types. We will cover the principles of the accounting systems (Underwriting Year, Accounting Year, Occurrence Year). At the end of the session, we will briefly share digitalisation and standardisation solutions/benefits.

Property reinsurance
There are a couple of factors to consider in designing a reinsurance programme. We will first calculate the expected loss by applying exposure (using various exposure curves) and experience-based ratings (base rate approach and probabilistic modelling). In doing this, we acknowledge that "costing" is independent from "pricing". Second, we will look at steering methodologies, describe the structure and functions of the various types of reinsurance programmes and lastly review the rules of thumb when setting retention.

Casualty reinsurance (the sting in the tail)
In this session we will consider both the impact of tail risk in relation to the triggers on an original policy and how they dovetail with a reinsurance contract, as well as considering how emerging risks can impact the tail. We will also take you through some common rating methodologies for an excess of loss treaty. Finally, we will wrap up with some other pertinent topics of the day in Casualty lines (e.g., social inflation, pandemics, climate change). 

Claims reserving for insurance
First, a re-visit of non-life reserving methodologies will lead to digging into real-life examples on current topics. The importance of actuarial reserving for the long-term success of fintech startups will be discussed with a hands-on example. Furthermore, using an overview of reserving for bodily injury claims, the dynamics of long-tail reinsurance and insurance segments will be illustrated. Current latent claims trends and phenomena like social inflation and nuclear verdicts will be hot topics. Finally, the importance of the feedback loop between the claims, underwriting and reserving functions will be highlighted.

Reinsurance structured solutions
We will explore the limit of traditional reinsurance and get a first insight into the world of structured reinsurance, without diving deep into technical details. We will discuss the difference between retrospective and prospective reinsurance by looking at different solutions which have been developed for specific client needs. We also touch on the asset/liability Integrated covers.

P&C solutions
Swiss Re P&C Solutions offers solutions to support you along the entire value chain. You will be given an overview of the full range of offerings and ultimately connect to your area of expertise or needs.

IFRS 17 implications for your reinsurance programme
Reinsurance under IFRS 17 is generally regarded as a topic of added complexity. We will take a look at some of the recurring themes that arise from our client interactions and highlight certain considerations one should be mindful of in the transition to IFRS 17.

Data analytics: CatNet underwriting challenge
You will start by exchanging your experience around data analytics and learn from one another. Thereafter, you will work in teams on a hands-on case study to dive deeper into the topic of analytics in one of the most interesting and challenging lines of business, Property NatCat. To support your learning experience, we will sign you onto Swiss Re's natural hazard atlas CatNet® tool.

Closing of programme, farewell ceremony and lunch, 12:00 p.m. – 03:00 p.m. CEST