Catastrophe Reinsurance

With Andrew, Iniki and the LA riots all occurring in 1992, the subject of catastrophe insurance and reinsurance has been getting quite a bit of attention. This session will address reserving issues particularly difficult for catastrophes. While the “tail” on such reserves would appear short, why then are reinsures still carrying reserves for Hurricane Alicia (1983) for example? Perspectives from London, New York, and California will be presented, including capacity problems, “spiral”, accumulation issues, and models for rating and reserving this coverage.