What’s the right reinsurance strategy for umbrella exposures – per policy or per occurrence? Read the full blog post here: http://www.genre.com/knowledge/multimedia/what-are-your-options-to-reinsure-your-umbrella-business-presentation.htm

1. Which is best for you?
Reinsurance Optionsto Transfer
yourUmbrella PolicyExposure

2. Ask yourselfthe following questions
when determining the structure for
yourUmbrella exposure…
? ??

6. Basedon youranswers, should youhave
a per policy or per occurrenceumbrella treaty?

7. Per Policy Reinsurance Umbrella Treaty
Reflects the unique characteristics of Umbrella risks.
The retention, limit and rate are not affected
by other Casualty business.

8. More flexibilityand choices of structureAllow youto keepor cede
more exposure and premium dependingon
profitabilityof business and corporate riskappetite.
Benefits of a Per Policy Umbrella Treaty

9. Umbrella Loss severity and volatilityare contained
withinthe separate umbrellatreaty, thereby not impacting
reinsurance terms on other casualtylines of business.
Benefits of a Per Policy Umbrella Treaty

10. The reinsurance occurrence limit reflects
the umbrella policy limit, eliminating
the risk of breaching treaty aggregate limits.
Benefits of a Per Policy Umbrella Treaty

11. The occurrence definitionwithinthe Umbrella treaty
is aligned with policy language, possibly leading to
broader coverage and more recovery.
Benefits of a Per Policy Umbrella Treaty

12. Reinsurance Premiums tend to be more
predictable and stable as they are based on
expected umbrella loss over time.
Benefits of a Per Policy Umbrella Treaty

13. Combines a variety of insurance productsand applies a common set of terms.
Reinsurance occurrence limitsand retentions are shared among
all products offered by the company.
Per Occurrence Reinsurance Umbrella Treaty

14. One set of coverage terms and a single retention
across all lines of business affords administrative ease in
underwriting,accounting and claims.
Benefits of a Per Occurrence Umbrella Treaty

15. The stability of knowing the maximum retainedloss
for any one occurrence (e.g., clash protection)
Benefits of a Per Occurrence Umbrella Treaty

16. Dependingon your umbrella experience,
pricing all lines collectivelymay resultin
an upfront umbrella discountnet of ceding commission.
Benefits of a Per Occurrence Umbrella Treaty

17. A claim involving both a primary and umbrellapolicy
could involve less coverage friction
as a single retention is applied to the entire loss.
Benefits of a Per Occurrence Umbrella Treaty

18. Large regional carriers withcasualty retentions equalto
or higher than their primary GL or Property product limits
might find this structureof particularvalue.
Benefits of a Per Occurrence Umbrella Treaty

19. Comparison
Exposure
Based Price
Discounted
Price
tailored “all-in-one”
more
predictability
Greater
volatility
More product
support Ease and
consistency

20. No one optionis always
cheaper, easier, better-suited or predictable.
The specifics will depend on your book of business
and the appetite you have to take risk.

21. We hope this overview is helpful in thinking
throughUmbrella reinsurance alternatives.
mslowin@genre.come+1 312 526 7546p
© 2016 General Re Corporation | This presentation is intended to provide background information to our clients and professional staff. It is time sensitive and may need to be revised and updated periodically.
brooke_cote@genre.come+1 203 328 6149p
MariaSlowinski
Contact us for
more information:
BrookeCote
UMBRELLASPECIALISTAND ACCOUNTEXECUTIVE
TREATYMARKETINGMANAGER -MIDWEST