CONSULTING SERVICES

Click on the headings below for more information.

• Actuarial Consulting

ReAdvisory’s actuarial team has substantial reinsurance experience and can provide consulting work on a wide variety of topics including the following:

 

• Profitability reviews by line of business or class
• Benchmarking of gross pricing models
• Trend studies
• Class plan studies
• Business plan evaluation and stress testing
• Product development
• DFA/ERM Analysis
• Support in risk transfer documentation

 

• Optimization of Reinsurance Structures

By combining the various tools that have been created by ReAdvisory we are able to customize each and every reinsurance program analysis to the risk statistics and reward goals of each individual client.  By using the economic idea of an efficient frontier we are able to simultaneously compare each alternative with the best reward for the lowest level of risk.  We can measure reward based on the following:

 

• ROE
• Combined ratios
• EBITDA
• Virtually every other income measurement used in the insurance industry

 

Furthermore, we can evaluate risk using the following statistics

 

• Probability of an x% reduction in surplus
• Probability of an underwriting loss
• Required capital using
• VaR
• TVaR
• Regulatory capital
• Rating agency required capital
• Any other risk measurement that can be parameterized within our DFA model

 

• Rating Agency Capital Model Support

The ReAdvisory team devotes a significant amount of time to maintaining an up-to-date understanding of rating agency capital models.  We’ve used that knowledge to create templates that allow us to evaluate the impact of changing business plans, acquisitions, strategic initiatives, and alternate reinsurance structures upon the capital adequacy ratios of the various rating agencies.

 

These models can also be linked to our state of the art DFA systems to create a distribution of capital adequacy ratios that can then be used as a basis for risk measurement in evaluating alternative reinsurance structures.

Contact
John Pagliaccio
jpagliaccio@readvisory.com