Reinsurance is crucial in protecting an insurer's assets as well as reducing variability in operational performance, while allowing use of the reinsurer's capital to write more business. Despite being one of the most important, complex and time-consuming decisions for insurance companies, reinsurance is often purchased with little or no detailed analysis, which can lead to results detrimental to the company’s financial condition.

JPWALL works closely with insurers in their reinsurance purchase decision in the following ways:

  • Reinsurance Optimisation
  • DFA and Capital Modeling
  • Reinsurance Reserving
  • Reinsurance Risk Transfer

Reinsurance Optimisation

By performing portfolio optimisation analyses, we help companies make more informed decisions on their reinsurance arrangements. By looking at different combinations of reinsurance programmes for each business segment, we recommend an optimal reinsurance structure that suits business goals and risk appetites.

DFA and Capital Modeling

Our consultants are very experienced in building Dynamic Financial Analysis (DFA) models. These DFA models are used to simulate losses under a range of possible scenarios to determine the appropriateness of current and proposed reinsurance arrangements, future capital requirements, and capital allocation between classes as well as retention analyses.

Reinsurance Reserving

The nature of a reinsurer’s business necessitates a different approach to reserving and estimation of IBNR. We understand these differences and know how to apply appropriate methods to ensure an accurate estimation of liabilities is achieved. In fact, JPWALL are often brought in to correct fundamental errors in approach made by other consultants. We have an impressive client base of reinsurers that we regularly conduct reserving estimates for across 5 countries - including a number of national reinsurers.

Reinsurance Risk Transfer

We assist in evaluating existing reinsurance programs to ensure there exists significant risk transfer between the insurer and the counterparty of the arrangement.