EXTRA-LARGE CLAIMS ESTIMATE SENSITIVITY BASED ON THE LOSS TABLE ASSUMPTIONS

Abstract

Reinsurance is very important product for insurance companies. It allows to transfer the risky part of the portfolio, which the insurance company does not like to have. To be able to set the reinsurance cover parameters, it is necessary to estimate the volume of future losses. The socalled loss-tables are generally used for this purpose. We will show different methods to calculate the loss-tables and its impact to estimate the reinsurance premium in this article.