Motor Liability Reinsurance Central and Eastern Europe ... - Bosna RE

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Motor Liability Reinsurance Central and Eastern Europe ... - Bosna RE

Motor Liability Reinsurance

Central and Eastern Europe

BMS H&D MOTOR PORTFOLIO

• We are a leading broker for Motor reinsurance

• We protect over USD 1.1 billion of motor premium

income

• With respect to motor business we reinsure

87 insurance companies in 15 countries

world-wide


Motor Liability Reinsurance

Central and Eastern Europe

BMS H&D MOTOR PORTFOLIO

Motor EPI Protected (over USD 1bn) Split by Country

Slovak Republic

6.24%

Romania

0.21%

Poland

2%

Slovenia

4.02%

USA

5.73%

Ukraine

1.04%

Moldova

0.09%

Makedonia

Bulgaria 1%

0.11%

Canada

0.20%

Bosnia

7.26%

Croatia

12.52%

Hungary

2.52%

Holland, Belgium

24.22%

Czech Republic

32.19%


Motor Liability Reinsurance

Central and Eastern Europe

BMS H&D MOTOR PORTFOLIO

Motor EPI Protected (over USD 1bn) Split by Type of Cover

QS Protection

30% TPL

9%

70% Casco

Predominantly

TPL

XOL Protection

91%


Motor Liability Reinsurance

Central and Eastern Europe

BMS H&D MOTOR PORTFOLIO

• We lead over 80%

• For 86% we place 100%

• Great flexibility is offered to clients with regards

to programme covers and structures.


Motor Liability Reinsurance

Central and Eastern Europe

BMS H&D MOTOR PORTFOLIO

• Non-proportional motor covers are arranged

for 70 insurance companies

• 60% of non-proportional covers have unlimited

top layers

• 26 insurance companies have proportional

motor covers


Motor Liability Reinsurance

Central and Eastern Europe

BMS H&D MOTOR PORTFOLIO

Programme Structure by priority bands (USD)

above 130,000

37%

up to 90,000

34%

90,000 - 130,000

29%


Motor Liability Reinsurance

Central and Eastern Europe

WHY REINSURE ?

• Individual large losses

• An accumulation of losses from one event

• An aggregate of individual large and small losses

BENEFITS

• Risk Spreading

• Capacity boosting

• Removal of uncertainty (Loss frequency, timing, severity)

• Catastrophe protection


Motor Liability Reinsurance

Central and Eastern Europe

HOW MUCH REINSURANCE ?

HOW MUCH REINSURANCE ?

• Capacity / Retention

• Solvency requirement

• Other requirements (Green card system)


Motor Liability Reinsurance

Central and Eastern Europe

CALCULATION OF RETENTION

1) RETENTION TO PREMIUM INCOME

Example:

• EPI MTPL DEM 20,000,000

• Retention 0.5% - 1.5% i.e. DEM 100,000 - 300.000

2) RETENTION TO CAPITAL

Example:

• EPI MTPL DEM 20,000,000

• Allocated capital (5:1) DEM 4,000,000

• Retention 0.5% - 5.0% i.e. DEM 20,000 - 200,000


Motor Liability Reinsurance

Central and Eastern Europe

PLACEMENT OF GREEN CARD REINSURANCE

• Market (number of reinsurers, written lines)

• Security (leaders, risk carriers)

• Long term commitment

• Layering

• Domestic / Green card


Motor Liability Reinsurance

Central and Eastern Europe

GREEN CARD X/L PRICING

Price in DEM per MTPL policy - comparison

INSURED*

UNLIMITED REINSURANCE IN EXCESS OF DEM

150,000.00 200,000.00 300,000.00 500,000.00 850,000.00 1,000,000.00

B, H Market 2.88 - 1.87 - 1.04 -

Insured 1 2.93 - - - - 0.76

Insured 2 - - - 1.46 1.10 0.70

Insured 3 - 3.62 2.83 - - -

Insured 4 - 2.60 2.20 1.92 1.40 -

Insured 5 - 2.10 1.90 1.73 1.30 -

Insured 6 - - 1.94 - - 0.78

Insured 7 - - - 1.34 - 0.57

* Insureds 1-7 (companies from various countries of former Yugoslavia)

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