1 May 2020

Liability ( Re ) Insurance

A UK Market Perspective - Special Focus on Underwriting / Peer Review Process Cathriona Donlon Senior Underwriter Casualty Axis Re Europe 2nd International Istanbul Underwriting Conference 30 th September – 1 st October 2010

Axis Re Philosophy

 Axis Re is an

Exposure Driven

underwriting operation. We seek clients who value our

Technical Approach

our focus on the

Quality Of Data

to pricing and required ( Karl Mayr

)

 We focus on traditional underwriting techniques and

Close Relationships

with our partners ( Mike Morill )  We believe that

Transparency

in pricing, quality data and

Frank Open Dialogue

with clients leads to sustainable relationships ( Bill Fischer ) 1 May 2020

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Casualty Reinsurance Underwriting Process



Client Selection



Portfolio Profile

( Initial Discussions + Submission Review ) 

Mini File Review



Reinsurance Structure



Slip / Wording Review



Pricing



Internal Sign Off Process

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Client Selection - Key Criteria Indicator

Strong Market Position Sound Financials Buying Motivation / Profit Potential Technical Underwriting Approach Strong Internal Process Portfolio Transparency Sophisticated Buyer Strategic Partner Reputation Issues Legacy Issues 1 May 2020

4 Impact

Casualty RI Submission – Narrative

       

Executive Summary

( Company )

Management / Key UW Team

( CVs )

Classes Covered Max / Normal Underwriting Limits Historic & Estimated Incomes

( LOB / Territory )

Underwriting Commentary

( Business Plan / Risk Appetite / UW Box / Changes of Note )

Regional Market Overview

( Pricing / T&Cs / Competitor Landscape )

Hot Casualty Topics

( e.g. F500 , Pharma / Chem , Asbestos , Terrorism , EMF , Rail , US Exposure , Telecommunications , Recall , Financial Loss , Auto Critical Parts , Multi Year Policies , Binding Authorities , FI / D&O – US Listed / ADR )     

Large Loss Commentaries :

Circs / View on Liability / Quantum

Underwriting Controls

( Authorities , Sign Off , Peer Review , Pricing Adequacy / Rate Monitoring / Pricing Tools / Risk Engineers )

Claims

( Reserving Philosophy / Claims Handling Procedures / Team )

Slip / Wording :

Exclusionary Language

RI Structure :

QS V XOL , Attachment Point , Loss Caps , Reinstatements , AAD / AAL / Loss A.Ps 1 May 2020

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Casualty RI Submission – Data

     

Historic Treaty Results

( RI Inc LRs )

Risk Profiles

( Line Size / Attachment Bands / Premiums )

Risk Lists

( Key Sectors / Top Line Utilization / Aggregation Potential )

Claim Triangulations Cedant ULR Projections Primary Rate Change

(Historic and Projection)

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Audit: What Value Added?

RI Underwriter

• Portfolio Transparency • Fresh Market Knowledge • Reinsurance Structure / Deal Refinement

Reinsurance Company

• Client / Broker Profile • Cycle Management • Client Benchmarking

Cedant

• Feedback • Additional Technical Expertise • Refined Reinsurance Pricing 1 May 2020

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Step 1 How to Audit - Axis Re Style !

 Set File Review Objectives  Decide Audit Team ( UW , Actuary , Claims )  Scrutinize Updated Portfolio List  Select Representative File Selection  Communicate Selection & File Pick Rationale

Step 2

 Opening Discussion with Client  Case by Case Risk Review (See Handout 1)  Summary Risk Specific Findings  Pre Client Feedback Audit Team Discussion

Step 3

1 May 2020  Discuss Individual File Findings with Client  Agree Overall Findings / Recommendations  Agree Follow Up  Document Files / Communicate Feedback (See Handout 2)

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Axis Underwriting Worksheet ( Sample )

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Axis Underwriting Worksheet ( Sample )

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Axis Underwriting Worksheet ( Sample )

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Special Acceptance – Basic RI Info Requirements ( KISS! )

 Reason for Special Acceptance  Risk Description / Exposure Profile including high hazards  Cedant Layer / Line / Pricing  Special Terms / Conditions  Basic UW Rationale  Original UW Submission / Slip ( Optional ! ) 1 May 2020

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Axis Re Contacts Market Responsible

Andew Bisset

Senior Vice President Reinsurance AXIS Re Europe

Brandschenkestrasse 90 CH 8002 Zürich Phone +41 44 567 01 50 Fax +41 44 567 0100 Email Web andrew.bissett@ axiscapital.com

www.axiscapital.com

Casualty Underwriter Cathriona Donlon Senior Underwriter Casualty Vice President- Reinsurance AXIS Re Europe

Brandschenkestrasse 90 CH 8002 Zürich Phone +41 44 567 01 33 Fax +41 44 567 01 00 Email cathriona.donlon@axiscapital.com

Web www.axiscapital.com

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