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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? …

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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  • 1. Which is best for you? Reinsurance Optionsto Transfer yourUmbrella PolicyExposure
  • 2. Ask yourselfthe following questions when determining the structurefor yourUmbrella exposure… ? ??
  • 3. Based on youranswers, shouldyouhave a per policyorper occurrenceumbrella treaty?
  • 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. 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. 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. 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. 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. 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. 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. 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. The stability of knowing the maximum retained loss for any one occurrence (e.g., clash protection) Benefits of a Per Occurrence Umbrella Treaty
  • 13. Dependingon your umbrella experience, pricing all lines collectivelymay resultin an upfront umbrella discountnet of cedingcommission. Benefits of a Per Occurrence Umbrella Treaty
  • 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. 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. Comparison Exposure Based Price Discounted Price tailored “all-in-one” more predictability Greater volatility More product support Ease and consistency
  • 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. 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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