| Holborn's work begins with a deep understanding of clients' business and their objectives. Each client portfolio is explored thoroughly to identify severe, complex, correlated or catastrophic exposures. These insights form the basis for the most efficient reinsurance solutions. Capabilities include concentration mapping; catastrophe modeling (with all major industry models); and proprietary deterministic analyses of clients' exposure to actual or potential industry losses. In addition to cat modeling, Holborn develops reinsurance rate indications for clients by analyzing their actual loss history and policy limit profiles.
With these tools, Holborn develops detailed expectations for its clients on how reinsurers will view their programs, helping them maximize capacity and minimize cost. These analyses help clients evaluate the cost/benefit trade-offs of various reinsurance structures, highlight any areas that may need to be addressed in advance of discussions with reinsurers, and allow Holborn to advocate effectively for its clients. As a result, clients confidently enter into discussions with reinsurers knowing exactly what to expect. And reinsurers know that underwriting packages received from Holborn have been reviewed, verified and analyzed with care, and so are more convincing and credible. After placement, clients' programs are reviewed by Holborn to ensure that they are still as efficient as possible, and alternatives are considered as market conditions and clients' needs change.
Applying its proprietary Dynamic Reinsurance Analysis model, Holborn can simulate all of a client's potential losses (both subject to reinsurance and not), then overlay reinsurance terms and create pro forma financial statements. By reviewing the impact that reinsurance has on net income, cash flow and surplus, Holborn helps clients evaluate the effectiveness of each program against their goals and objectives.
Other analytic services that Holborn regularly performs include risk scenario analyses, peer benchmarking, and analyses of how Best's BCAR scores may be impacted by different reinsurance structures.
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