Which is best for you?
Reinsurance Optionsto Transfer
yourUmbrella PolicyExposure
Ask yourselfthe following questions
when determining the structurefor
yourUmbrella exposure…
? ??
Based on youranswers, shouldyouhave
a per policyorper occurrenceumbrella treaty?
Per Policy Reinsurance Umbrella Treaty
Reflects the unique characteristics of Umbrella risks.
The retention, limit and rat...
More flexibilityand choices of structure Allow you to keepor cede
more exposure and premium dependingon
profitabilityof bu...
Umbrella Loss severity and volatilityare contained
withinthe separate umbrellatreaty, thereby not impacting
reinsurance te...
The reinsurance occurrence limit reflects
the umbrella policy limit, eliminating
the risk of breaching treaty aggregate li...
The occurrence definitionwithinthe Umbrella treaty
is aligned with policy language, possibly leading to
broader coverage a...
Reinsurance Premiums tend to be more
predictable and stable as they are based on
expected umbrella loss over time.
Benefit...
Combines a variety of insurance products and applies a common set of terms.
Reinsurance occurrence limits and retentions a...
One set of coverage terms and a single retention
across all lines of business affords administrative ease in
underwriting,...
The stability of knowing the maximum retained loss
for any one occurrence (e.g., clash protection)
Benefits of a Per Occur...
Dependingon your umbrella experience,
pricing all lines collectivelymay resultin
an upfront umbrella discountnet of ceding...
A claim involving both a primary and umbrellapolicy
could involve less coverage friction
as a single retention is applied ...
Large regional carriers withcasualty retentions equal to
or higher than their primary GL or Property productlimits
might f...
Comparison
Exposure
Based Price
Discounted
Price
tailored “all-in-one”
more
predictability
Greater
volatility
More product...
No one optionis always
cheaper, easier, better-suited or predictable.
The specifics will depend on your book of business
a...
We hope this overviewis helpful in thinking
through Umbrella reinsurance alternatives.
© 2014 General Re Corporation | Thi...
What Are Your Options to Reinsure Your Umbrella Business?
What Are Your Options to Reinsure Your Umbrella Business?
What Are Your Options to Reinsure Your Umbrella Business?
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What Are Your Options to Reinsure Your Umbrella Business?

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What’s the right reinsurance strategy for umbrella exposures – per policy or per occurrence?

Read the full blog post here: http://www.genre.com/knowledge/multimedia/what-are-your-options-to-reinsure-your-umbrella-business-presentation.htm

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What Are Your Options to Reinsure Your Umbrella Business?

  1. 1. Which is best for you? Reinsurance Optionsto Transfer yourUmbrella PolicyExposure
  2. 2. Ask yourselfthe following questions when determining the structurefor yourUmbrella exposure… ? ??
  3. 3. Based on youranswers, shouldyouhave a per policyorper occurrenceumbrella treaty?
  4. 4. Per Policy Reinsurance Umbrella Treaty Reflects the unique characteristics of Umbrella risks. The retention, limit and rate are not affected by other Casualty business.
  5. 5. More flexibilityand choices of structure Allow you to keepor cede more exposure and premium dependingon profitabilityof business and corporate risk appetite. Benefits of a Per Policy Umbrella Treaty
  6. 6. Umbrella Loss severity and volatilityare contained withinthe separate umbrellatreaty, thereby not impacting reinsurance terms on other casualtylines of business. Benefits of a Per Policy Umbrella Treaty
  7. 7. The reinsurance occurrence limit reflects the umbrella policy limit, eliminating the risk of breaching treaty aggregate limits. Benefits of a Per Policy Umbrella Treaty
  8. 8. The occurrence definitionwithinthe Umbrella treaty is aligned with policy language, possibly leading to broader coverage and more recovery. Benefits of a Per Policy Umbrella Treaty
  9. 9. Reinsurance Premiums tend to be more predictable and stable as they are based on expected umbrella loss over time. Benefits of a Per Policy Umbrella Treaty
  10. 10. Combines a variety of insurance products and applies a common set of terms. Reinsurance occurrence limits and retentions are shared among all products offered by the company. Per Occurrence Reinsurance Umbrella Treaty
  11. 11. One set of coverage terms and a single retention across all lines of business affords administrative ease in underwriting,accounting and claims. Benefits of a Per Occurrence Umbrella Treaty
  12. 12. The stability of knowing the maximum retained loss for any one occurrence (e.g., clash protection) Benefits of a Per Occurrence Umbrella Treaty
  13. 13. Dependingon your umbrella experience, pricing all lines collectivelymay resultin an upfront umbrella discountnet of cedingcommission. Benefits of a Per Occurrence Umbrella Treaty
  14. 14. A claim involving both a primary and umbrellapolicy could involve less coverage friction as a single retention is applied to the entire loss. Benefits of a Per Occurrence Umbrella Treaty
  15. 15. Large regional carriers withcasualty retentions equal to or higher than their primary GL or Property productlimits might find this structureof particularvalue. Benefits of a Per Occurrence Umbrella Treaty
  16. 16. Comparison Exposure Based Price Discounted Price tailored “all-in-one” more predictability Greater volatility More product support Ease and consistency
  17. 17. No one optionis always cheaper, easier, better-suited or predictable. The specifics will depend on your book of business and the appetite you have to take risk.
  18. 18. We hope this overviewis helpful in thinking through Umbrella reinsurance alternatives. © 2014 General Re Corporation | This presentation is intended to provide background information to our clients and professional staff. It is time sensitive and may need to be revised and updated periodically. Contact our Umbrella Treaty Team for more information: brooke_cote@genre.come +1 203 328 6149p BrookeCote EKramer@genre.come +1 203 328 5778p ElizabethKramer UmbrellaBusinessDevelopment mslowin@genre.come +1 312 526 7546p Maria Slowinski UmbrellaSpecialist scarr@genre.come +1 860 520 7669p Steve Carr bmonahan@genre.come +1 614 222 3802p BrianMonahan cniemeie@genre.come +1 614 222 3844p ColinNiemeier UmbrellaSpecialist UmbrellaSpecialist UmbrellaSpecialistTreatyMkt. Strategy& BusinessDev.
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