Shires Partnership Limited

Optimise your reinsurance programme

An independent outside review of your reinsurance programme can give the Board comfort that it functions in accordance with defined risk appetite. This might be an in-depth review or a quick litmus test against the "rules of thumb" (*), eg

 

Risk xl

  • First layer deductible        > 1-2% of GNPI, but < 10%
  • Rate on Line per layer      > 5% but < 25%

Cat xl

  • First layer deductible        > 5% of GNPI, but < 30%
  •                                       > 100% maximum risk exposure or Risk xl deductible
  • Rate on Line per layer:     > 1-2% but < 25%

(*) Quoted from Richard R Doerr's "Legacy of Musings on Property Excess of Loss" -       1991