Fluent Essays

The calculation of catastrophe excess of loss event. The excel sheet attached contain the claim data in each countries to be considered when calculating the premium, catastrophe event and reinsurance fees. The lecturer want us to identify the catastrophic event in each countries mentioned and develop reinsurance programme with adequate premium. You can use burning cost analysis or exposure method when distributing the claimMSc Risk Management Module: Reinsurance Analytical Report You work for The Stan Reinsurance Company (hereinafter referred as Stan Re), located in Bermuda. Your company has received an inward reinsurance business proposal from a UK based primary insurer named Limestreet Insurance Company (hereinafter referred as Limestreet). The Limestreet requires the Stan Re to be the lead underwriter of its Property, Liability and Accident businesses. A summary of the Treaty Slips for (1) per risk Excess of Loss; and (2) catastrophe Excess of Loss including the relevant information necessary to carry out the assessment are available below. Per Risk Excess of Loss Treaty Summary Ceding Company Limestreet Insurance Company Ltd Agreement This agreement between the ceding company and the reinsurer consist of two parts being the specific conditions specified in the treaty summary including any appendix and the general terms and conditions. Period 12 months commencing 1st of July 2021. Losses occurring irrespective of attachment dates of original policies. Type Excess of Loss cover Class Property, Liability and Accident businesses Territory Worldwide Limits and Deductibles 1st Layer: To pay US$ 25,000,000 ultimate net loss each and every risk in excess of US$ 50,000,000 ultimate net loss each and every risk. 2nd Layer: To pay US$ 25,000,000 ultimate net loss each and every risk in excess of US$ 75,000,000 ultimate net loss each and every risk. Reinstatements 1st layer: four free 2nd layer: one free Premium and rates As a part of this coursework you are required to calculate the Minimum Deposit Premium [see question (b) below]. Brokerage The advisable brokerage commission is 10\% (0\% on reinstatements). However, it is expected that students should use another rate based on their judgement on the basis of practical circumstances. General conditions See Questions (a) and (c) below. Data Supplied in Tables 1, 2, 3, 4 and 5 below Table 1: GNPI Fiscal Year GNPI (estimated) in US$ 2021/22 900,000,000 2020/21 750,000,000 2019/20 690,455,000 2018/19 610,500,000 2017/18 500,100,000 2016/17 480,000,000 2015/16 404,400,000 2014/15 366,500,000 2013/14 310,300,000 2012/13 255,800,000 2011/12 247,200,000 2010/11 238,000,000 Table 2: Projected Income for 2021/22 Country/region Projected Income (in US$) North America 205,000,000 Europe 250,250,000 Japan 102,000,000 Asia 170,250,000 Middle East 161,100,000 South America 100,000,000 Australasia 110,150,000 Caribbean 60,300,000 Africa 40,950,000 Total 1,200,000,000 TabClaim data Year Description Claims 5 2010 Panasonic Corporation - Tsunami 79,338,000.00 Nissan Japan - Tsunami 69,772,500.00 Fukushima pollution liability - Tsunami Est. 162,957,394 Toyota Corporation - Tsunami 82,598,250.00 Super Dry Corporation – Tsunami 70,875,000.00 Sky New Zealand - Earthquake 59,073,000.00 Next New Zealand – Earthquake 65,388,750.00 Macys New Zealand – Earthquake 91,245,000.00 Christ Church Council NZ – Earthquake 73,080,000.00 House damage – NZ - Earthquake 47,250,000.00 2011 Sony Thailand Floods 57,960,000.00 Dell Thailand Floods 69,573,000.00 Daimler Thailand – floods 70,638,750.00 Thai Hotel – Floods 59,745,000.00 Thai Resorts - floods 73,059,000.00 2012 Anglo American - Fire South Africa 35,700,000.00 Nestle Contamination - Swiss 64,533,000.00 City University London Fire 47,071,500.00 2013 Oil Rig Explosion Texas US 82,740,000.00 2014 Wal-Mart Superstores Fire - USA 75,232,500.00 Afgan Hotel - Terrorism 85,417,500.00 Brazil Sugar Corporation - Fire 48,006,000.00 2015 Mississippi Holdings - Hurricane Patricia 37,529,100.00 New Orleans Motors - Hurricane Patricia 70,664,625.00 Macys – Flooding Hurricane Patricia 79,591,500.00 Schefenacker, Germany fire loss 72,036,000.00 2016 Toshiba Corporation - Japan Fire 57,504,600.00 Nikon Japan - Fire 58,425,750.00 Grenfell Tower - Fire 27,541,350.00 2017 British Telecom - Fire 34,900,200.00 John Lewis - Fire 42,786,900.00 Total FinaElf France Pollution liability 45,027,675.00 2018 BAA Ash Cloud Business Interruption Loss 54,027,000.00 BP Explosion USA 65,619,000.00 Fire Marfin Bank Greece 70,897,500.00 Fire Central World Shopping Mall Thailand 50,947,875.00 2019 ANZ New South Wales Australia – Fires 72,657,000.00 Australia Famers Union – Bush Fire 77,832,000.00 Associated News Papers Australia – Bush Fire 54,855,000.00 SASOL SA Environmental Pollution South Africa Est. 65,750,004 Grenfell Lawsuit Est. 46,400,004 Mitsubishi Motors Japan – Earthquake in Yamagata 70,897,500.00 Sony Japan – Earthquake in Yamagata 60,262,875.00 Japanese Power Company – Earthquake in Yamagata 91,494,000.00 Walmart USA - Fire 68,827,500.00 Ford Motor Co - Fire 62,332,875.00 Petronas Mozambique – Cyclone Idai 24,012,000.00 Ariston Zimbabwe – Cyclone Idai 38,709,000.00 Tanganda Tea Estate – Cyclone Idai 30,532,500.00 Samsung Mozambique – Cyclone Idai 18,862,875.00 Standard Bank – Malawi – Cyclone Idai 47,092,500.00 2020 Wembledon Covid-19 Business Interruption Loss 149,040,000.00 Olympics Cancellation Covid-19 BI Losses 75,969,000.00 Gjerdrum landslide Loss - Norway 67,792,500.00 Maersk Essen 750 containers lost overboard 207,000,000.00