Business Model and Reinsurance, Risk & Capital Management, Disclosure
New solvency regulations and the severity of market conditions have driven insurers to reassess the contribution of reinsurance to their business and financial model.
Exene helps insurers identify how to involve reinsurance in their business model in the best possible way, within the regulatory and market context. We assist them in adapting their reinsurance strategy to new conditions of corporate strategy, governance, risk and capital management. We help communicate their reinsurance strategy to stakeholders.
Business Model and Reinsurance strategy
Decisions made by an insurance company on the extent of involvement of reinsurance in its business model will have an impact on its competitive position.
Exene assists insurers in identifying competitive advantages through strategic partnership with reinsurance. We help formulate strategy by assessing the value of reinsurance among various options about topics like product innovation or entry onto a new market, new distribution channels or their financing, outsourcing to reinsurance, operational performance and cost control, financial flexibility or profit model.
We assist in strategic planning or ORSA.
We help evaluate the business model of the group level reinsurance function.
Risk & Capital Management and Reinsurance
Exene analyses regulatory (dis)incentives to reinsurance in the risk and capital management of the insurance risk carrier.
We help to implement the overall risk management strategy within reinsurance. We identify optimizations through reinsurance of risk management, financial structure or solvency capital strategy.
We help select business, risk and capital performance measures and key indicators that consistently reflect risk transfer and thus contribute to the informed management of the company.
DISCLOSURE and Reinsurance
Exene assists the governing bodies of the insurance company in the narrative or quantitative communications on reinsurance (Reinsurance report…) that they must approve regularly.
We support clients in preparing their communications to the supervisory authority, investors and analysts or rating agencies.
We help insurance companies to implement the interaction provided by the prudential regulation project Solvency II between the reinsurance function and key governance functions, notably the risk and actuarial functions.
Some related experience
- For a P&C insurer, adapt and document its reinsurance strategy within the Solvency II Governance and Risk Management framework.
For a Life insurer, adapt and document its reinsurance strategy within the Solvency II Governance and Risk Management framework.
Propose reinsurance items to be integrated into the ORSA exercise.
Define a risk concentration strategy within the Solvency II Governance and Risk Management framework.
Define a framework to assess the advantages of reinsurance credit in solvency capital compared with other sources of capital
Define a set of performance key indicators related to insurance risk transfer
Define a structure and a first-run content for the documentation provided to the Reinsurance Committee