S&P’s new capital model has meaningful implications on insurers’ reinsurance purchase decisions. Given changes to debt-funded capital credit and other capital adjustments, generally higher underwriting capital factors, enhanced diversification benefits, and varying natural catastrophe return period requirements, insurers should re-assess the cost/benefit of their current reinsurance programs. Capital relief structures such as quota shares and legacy covers that target capital intensive lines of business as well as increased catastrophe limit may offer substantial S&P capital relief.
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S&P Capital Model Update
S&P’s new capital model has meaningful implications on insurers’ reinsurance purchase decisions. Given changes to debt-funded capital credit and other capital adjustments, generally higher underwriting capital factors, enhanced diversification benefits, and varying natural catastrophe return period requirements, insurers should consider whether to re-assess the cost/benefit of their current reinsurance programs. Capital relief structures such as quota shares and legacy covers that target capital intensive lines of business as well as increased catastrophe limit may offer substantial S&P capital relief.
Rob McNamara appointed Chairman, North America Facultative; Craig Wadman named Facultative Leader, North America, with Michael Pope, Jimmy Gulick, Aaron Augustyniak, and Sterrett Woods appointed to senior Casualty and Property Facultative roles in North Americ ...
