Reserving for catastrophe reinsurance

Document description

Recent years have seen the impact of a large number of catastrophes, not only on the London catastrophe market but on most general insurance offices. The paper starts off from the assertions that a) the development pattern of the loss advices of each catastrophe is unique to that catastrophe and can differ by source of advice, and that b) the development pattern of the net account is heavily by the outwards reinsurance pattern of protections, hence c) traditional methods of claim development estimates will not provide the correct answers in the reserving process. The paper then explains a method of reserve estimating by following through a number of steps.