Pricing tools for reinsurers and insurers

Catco can develop for your company very efficient pricing software based on a long and rich experience with actuarial services of reinsurance and insurance companies. These software are developed on Excel. The spreadsheet is mostly used for inputs/outputs and charts and all calculations are developed in VBA macros, making software much more ergonomic, faster, lighter and safer, with practically unlimited possibilities.
An easy connection can also be made with Microsoft Word to produce automatic and well designed reports of the quotation, which can be very handy in the rushing days of a renewal season.

Topics typically covered in a non proportional reinsurance rating tool

1. As If calculation of historical exposures and losses (ie as if considered at today's date)
2. Modeling of loss amounts
3. Modeling of number of losses
4. Quotation based on burning cost (ie historical loss/premium experience)
5. Quotation based on modeling and Monte Carlo simulations
6. Annual conditions: reinstatements, annual aggregate deductible (AAD)

Other methods are addressed, such as exposure rating for example. For stop loss coverages, a distinction between 'attritionnal' losses (ie regular) and years with catastrophic events is made.

For liability treaties specifically, other modules are added :

1. Extropolation of final amounts of historical losses used to quote, many of them being usually still opened at the time of the quotation
2. Financial impact of the delay between treaty year and the time when losses are actually declared or paid, which is usually several years
3. Impact of specific clauses like stability or index clauses

Illustrations of pricing tools built for reinsurers