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Holborn's Strategy and Philosophy
 We model to meet clients’ needs, and also to speed reinsurers’ review. We are not
responsible for reinsurers’ conclusions, only for getting them data.
Holborn actively uses all major catastrophe models (RMS, EQE and AIR), as well as
proprietary models and techniques to advise clients. We have RMS and EQE in house,
and buy services from AIR on an individual project basis.
We are not tied to one model, set of assumptions or methodology.
- All models are necessarily over-simplified.
- Each model has its unique assumptions and approach.
- The only thing we know for certain is that all models are wrong!
RMS currently gets the most play because of:
- Exportable results
- Market acceptance
- “Porridge bowl” factor
- Momentum
Model Availability
Release of Model Data to Underwriters
All Underwriters:
- Raw exposure summaries
- Exposure Maps
- UNICEDE data formats
Underwriters who have acknowledged the “use of client data” letter
(see following pages)
- RMS EDM and RDM files
- AIR CLF files
- EP Curves
- AAL by treaty layer
- AAL Maps
Non Reliance - Non Disclosure Letter
Holborn and reinsurers share information in order to underwrite and
service reinsurance placements and claims for our mutual clients. In
order to protect the interest of all parties, custom and law limit the
use of client information. This note describes how Holborn expects
reinsurers will protect that information. If this summary in any way
conflicts with your own understanding, you should let us know before
you review any client information. However, this is not intended to
be complete or authoritative, and reinsurers should always be guided
by their own legal advice
Personal Privacy
The Gramm-Leach-Bliley Act of 1999 limits how U.S. insurers can use and
distribute information about a person that was provided in an application
or claim. Clients, reinsurers and Holborn are all subject to the Act.
Reinsurers (and their affiliates) must not use personal information for
marketing purposes, in particular. For Life, Health and Disability claims
(either on WC or Automobile No Fault coverage or written as such),
Holborn may omit any information that will identify a particular
individual, such as addresses, middle or maiden names and social security
numbers.
Client Confidentiality
Any information provided by a current or prospective client is confidential and the
sole property of the client and is only to be used by reinsurers for underwriting
and claims-handling purposes. Reinsurers must not disclose this information to
other parties except to review the placement or claim. Client information includes
statistics on premiums, losses, expenses, limits and exposures, as well as business
plans, coverage forms and underwriting standards or guidelines. Information
on the type and amount of insurance or reinsurance coverage provided is
also confidential.
Reinsurers may be liable to a client or its insureds if confidential information is
provided directly or indirectly to a competitor or a claimant. Clients may be also
able to protect this confidentiality through their local courts, at reinsurers’
expense.
Third-Party Analyses
To assist reinsurers in their reviews, Holborn distributes the professional
work product of other parties, such as auditors, actuaries, loss adjusters
and catastrophe modeling software vendors. We take no responsibility for
these other parties’ conclusions and reinsurers are responsible for
independent verification of any underlying data or assumptions. Licenses,
restrictions, and reservations will usually apply to the work of third-party
professionals. Any reliance or further distribution of third-party work
product is the responsibility of the reinsurer. Reinsurers should ask these
professionals about any restrictions that they may require.
No Promise of Future Performance
Reinsurers are experts in the business of taking risk. The terms that
reinsurers offer or accept are the product of their own independent and
complete reviews. Holborn and our mutual clients do not claim or
suggest that the reinsurance terms the parties agree will produce any potential or expected amount of profit or loss.
Allowable Use
A reinsurer may always provide client information on a need-to-know
basis to its retrocessionaires, parents, auditors, lenders or securities or
insurance regulators, or when otherwise required by law. However, unless
the particular circumstances require detail, reinsurers should provide this
data on an aggregate basis so as to protect the confidentiality of individual
client information.
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