Reinsurance Services

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Reinsurance Services

Actuarial Services for Reinsurance Support

Accurately forecasting expected losses and understanding the inherent volatility of commercial insurance products is a key component to every client's risk management strategy. It can mean the difference between a healthy insurance entity and an insolvent one.

We have over 50 members of the American Academy of Actuaries on staff, including members of both the Casualty Actuarial Society and the Society of Actuaries. These professionals are part of the underwriting team which helps clients make appropriate risk transfer decisions.

Services provided by our actuarial staff related to reinsurance pricing include:
 

  • Analyzing client-specific data to quantify loss potential
  • Comparing client's projected loss experience to industry benchmarks
  • Employing state-of-the-art pricing tools to determine value of risk transfer product using proprietary dynamic financial analysis software to evaluate various reinsurance structures to optimize the client's financial objectives

Catastrophe Exposure Management

The Risk Accumulation Department oversees the catastrophe risk management function for Munich Re's US operations. We are responsible for monitoring all property and workers compensation accumulations for both natural and non-natural perils, as well as handling all technical and scientific catastrophe risk modeling issues.

The catastrophe modelers are responsible for modeling all property and workers compensation exposures using commercially available catastrophe models. Our geoscience experts evaluate these models and provide technical expertise related to natural catastrophe-related underwriting and accumulations issues.

The staff of the Risk Accumulation department can help you to:
 

  • Understand the catastrophe models and help develop processes to use these models for managing a portfolio
  • Optimize your catastrophe management strategy by evaluating your processes, analyzing exposure data capture and workflow, and understanding the impact of data and assumptions on modeling results
  • Gain knowledge about various scientific topics (i.e. climate change, natural perils, catastrophe modeling) through educational seminars
  • Evaluate your exposure to natural catastrophe perils and terrorism for reporting to rating agencies

Claims Services

Our claims and underwriting teams work in close partnership with you to define and create loss prevention strategies and optimize the underwriting process.

Our Claims division is among the strongest in the industry, with our experts averaging over 20 years of experience managing and resolving claims issues. Our expertise is available to Munich Re clients to help solve a wide range of claims challenges. We can help you to:
 

  • Ensure the adequacy of your reserves
  • Better manage catastrophic injury claims
  • Analyze treaty commutation claims
  • Successfully resolve coverage issues
  • Review policy exclusion language
  • Improve settlement evaluation and negotiation processes
  • Enhance effectiveness of a claims unit through due diligence reviews, claims and operational audits and similar activities


Consulting services and seminars
Consulting services and seminars are available in the following areas:

Casualty claim seminars
Our claim professionals partner with University of Wisconsin Graduate Business School to offer basic and advance programs in casualty claims handling which are designed to increase the level of expertise and skill among primary carrier claims departments, thereby improving primary insurer loss experience while highlighting our value-added services. The intention is for the program to be very practical and hands-on. Our goal is to share information about decision making and principled, fair claims processes; not only doing things right, but doing the right thing.

The seminars look to provide knowledge filling the common gap often found in current claims departments between the experienced adjusters and the newer adjusters. That is, rather than a continuous age distribution, many departments appear to have a group of older adjusters with greater expertise and a second group of younger, less experienced adjusters. The ultimate retirement of the first group may leave some departments short on expertise. The participants in this program are expected to return to their jobs with the ability to share their new knowledge with colleagues.

Construction defects claims management
Construction defects claims against builders have soared nationwide in recent years. Because the cost of defending these types of claims has become a significant problem for insurers, we have a construction defects specialist on staff to assist our clients. Our actuarial and claims consultants can help clients to quantify their ultimate construction defects liabilities, establish dedicated construction defects claim units, develop claims-handling “best practices”, and create litigation and case management strategies, all of which can result in significant cost savings.

Developing exposures
As a leading reinsurer, we have the opportunity to view developing exposures from the diverse perspectives of our clients. Exposures we are currently monitoring include: advertising liability/intellectual property, toxic mold, and genetic engineering. Our claims consultants can be invaluable resources to our clients who need up-to-date information on the legal, insurance, reinsurance and contractual issues surrounding developing exposures. Our claims professionals are often teamed with underwriters, actuaries, and contract wording specialists to help clients develop comprehensive solutions as new issues arise.

Asbestos, environmental, other latent and mass tort claims management
Our A&E, other latent and mass tort claims staff brings two decades of experience in managing, evaluating and resolving these difficult and complex exposures. They share their experience with clients and can assist them in a variety of ways, including:
 

  • Seminars on all aspects of these claims
  • Analysis and evaluation of claims operations, processes and procedures
  • Coverage issue analysis and defense
  • Exposure and reserve analysis assistance on a single claim, group of claims or entire claims portfolio
  • Assistance with claim and / or litigation management strategy


Managing high-impact claims more efficiently and effectively
Our consulting services and seminars will help you to more efficiently and effectively manage the following high-impact claims:
 

Litigation cost containment

By improving your company's lawsuit management processes, you can lower litigation expenses and claims costs, and help avoid surprise verdicts. Our claims professionals assist clients by: conducting on-site reviews of litigation control, data collection and reporting procedures and making recommendations for changes; and providing hands-on trial strategy assistance.

Negotiation skills training

Our "Negotiation Skills and Techniques" workshop provides in-depth analysis of the claims negotiation process by examining a variety of successful techniques, strategies and negotiation psychology. Attendees gain experience and confidence through hands-on participation in staged negotiations. The goal of the workshop is for attendees to effect more favorable settlements, thereby containing loss and expense dollars for their companies.

Policy language reviews

Our claims specialists, experienced in evaluating coverage issues, will assist clients in reviewing proposed or existing wording of policy forms and agreements. We will offer comments, suggestions and practical insight on contract language. The process includes comparisons with other available contract language and culminates in a meeting with the client to discuss our findings. Our comments, suggestions and recommendations should be viewed as an additional resource for consideration by the client company and are not to be considered as a legal opinion or a substitute for legal counsel.

Property catastrophe claim management

  • Pre-loss planning and modeling
  • Logistics and management of cat claim office
  • Adequate staffing and appropriate compensation
  • Identification of qualified independent adjusters and experts
  • Reporting requirements
  • Closing the cat office
  • Lessons learned

Medical claims services

Our Best Doctors® Catastrophic and Legacy Case Services program improves the medical and cost outcomes of high acuity, legacy claims and workers' compensation catastrophic injuries. We achieve optimum results by using the top medical experts from Best Doctors® consulting services.

Types of injuries suggested for referral include:
 

  • Traumatic brain injury, including skull fracture and anoxic brain damage
  • Paraplegic/quadriplegic
  • Severe burns, electrical contact burns
  • Multiple trauma
  • Amputations
  • Reflex sympathetic dystrophy
  • Severe orthopedic conditions, cervical and low back pain/injury, carpal tunnel syndrome and related compression neuropathies
  • Chronic pain
  • Long-term legacy cases and unresolved and medically unstable cases

Dynamic Reinsurance Analysis

Our Dynamic Reinsurance Analysis (DRA) services can help you objectively assess the effectiveness of your reinsurance program. Whether you want an independent evaluation of your entire program, have specific questions about the effects of restructuring your program, or are simply interested in periodically validating your approach, teaming with our experts is a valuable exercise.

Analyzing your needs
The process begins by establishing a clear understanding of your company's financial goals and constraints. In turn, we will collaborate with you in designing the scope of services to quickly answer your specific business questions. The scope can range from transactional analyses of risk retention levels and specific contract features to whole account reinsurance program analysis.

Modeling your business
Our DRA services use our own proprietary software as part of our ReDesign® service, which includes extensive liability/reinsurance simulation modeling capabilities. This service is simple, fast and efficient.

Supporting your reinsurance decision
Once the modeling phase is completed, the analysis team, along with your account manager, will present an insightful, report that includes a series of probability graphs as well as risk and return charts. These will enable you to quantify the costs and benefits of your company's various reinsurance options.

Our DRA reports are intuitive and easy to understand, and well supported with client-tested charts and graphs that distill the technical results of our simulation models into tangible reinsurance solutions – unlike the complex outputs of many other models in the market today. Our proven track record, insights, and user friendly output will help you make more effective decisions, and better align your reinsurance program with your corporate risk appetite and strategic goals.

Market Research

In today's competitive marketplace information is key to success. Our professional research analysts provide custom research and analysis to help achieve your business goals.

Gain a competitive advantage
The market research services provided can help you gain a competitive advantage. You can use our services to:
 

  • Perform competitive intelligence
  • Compile industry facts and figures
  • Define new business opportunities
  • Expand subject knowledge
  • Track current industry events
  • Develop strategic plans


Custom reports and research
Whether you require market share reports by line of business or need to identify companies that write certain coverages, we can help. Some of our most requested research reports, designed and tailored to your specific needs, are: Current market trends: These reports provide detailed information by line of business. Some of our clients use this information in creating underwriting manuals.
Market share: These reports offer detailed information by line of business, which can identify competitors in the marketplace.
Conference research: This research highlights key conferences by topic. This data can be used to identify conferences you may wish to attend or participate in through speaking opportunities or exhibits. State Profiles: We understand the amount of knowledge that is needed to make informed business decisions. Our state profiles consist of a compilation of facts and figures, regulatory and industry issues, and trends for specific states and lines of business. These reports can assist you to evaluate the marketplace for specific lines of business in designated states as well as to launch marketing/sales campaigns. You will understand the insurance environment before entering a state.

Our resources
We perform our research using data provided by key industry sources, including A.M. Best, Conning Research and Consulting, SNL Financial and more.

Underwriting Reviews

Whether you seek growth in new markets or specialized lines, need to get a handle on undesirable loss ratios, your Munich Re underwriting team is a valuable resource for comprehensive analysis of your underwriting operations.

Our underwriters have extensive primary and alternative market underwriting and management experience and are intimately familiar with the underwriting, marketing and loss control operations of all types of insurance entities. The majority of our staff hold professional designations such as CPCU, ARM, and ARe.

Principal services

  • Underwriting reviews and advisory services
  • Underwriting bulletins, guidelines and management information reports
  • Form/program reviews
  • Underwriting training seminars, including custom training classes (e.g. contractor underwriting and emerging exposures) and webinars


Custom solutions
Our underwriting review services are customized to address your specific circumstances and needs. After meeting with you to identify your needs, we will conduct a review that includes management interviews and a thorough review of your files, underwriting guidelines and authority levels. The result is an in-depth report that details our findings and includes recommendations for improvements. Our advisors are also available to assist you in implementing their recommendations. Our goal is to offer creative ideas to help you maximize marketing opportunities and improve your loss picture.

Transactional Reviews

Reinsurance accounting and reporting requirements may be difficult to manage, so it is not unprecedented that errors and omissions occur in the administration of the reinsurance agreement. Errors and omissions that remain undiscovered for a period of time (i.e. spanning more than one calendar year) can have a destabilizing effect on the ceding company’s net underwriting results.

The design, implementation and testing of controls requires a deep understanding of reinsurance. Munich Re’s professional Account Services team, each member having over 15 years of transactional review experience, follows a systematic approach to evaluating the relevant transactions.

A summary of procedures required for a thorough transactional review includes:

  • Review the terms and conditions of the subject reinsurance contracts
  • Obtain the direct and ceded data pertaining to the contracts.
  • Reconcile the ceded data to the summary reinsurance reports previously issued by the ceding company.
  • Employ computer assisted analytical procedures to reconcile the ceded transactional data to the direct transactional data to: a) Identify any omissions from the ceded data b) Identify any inconsistencies between the ceded premium and loss transactions.
  • Conduct an in-depth analysis of any anomalies – this analysis may require a review of documents contained in policy files and claim files.

Contact

Contact us to learn more about our custom reinsurance solutions.

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This publication is available exclusively to Munich Re clients. Please contact your Client Manager.