Gen Re Intermediaries Holds Catastrophe Seminar

STAMFORD, Conn.-- (BUSINESS WIRE) -- Gen Re Intermediaries (GRI) hosted a two-day client seminar to address the catastrophe risk management needs of insurance companies. Industry experts on catastrophe losses and modeling shared their latest insights and research on the nature of catastrophic risk and how insurers can better manage that risk. Tony Sammur, President of GRI, commented "Our clients heard from leading experts about the uncertainty associated with natural peril risk. This serves to remind each of us that we need to proactively manage accumulation risk."

The seminar featured eight industry speakers from organizations that included PCS, RMS, AIR Worldwide, Karen Clark & Co., Dowling & Partners and Colorado State University. Tony Sammur demonstrated GRI's MapPML, a proprietary web-based application to map an insurer's property portfolio and evaluate catastrophe risks. Berto Sciolla, Executive Vice President of Gen Re, closed the seminar with a reinsurer's perspective of catastrophe risk.

"The experts confirmed the uncertainty in forecasting extreme weather, and how that uncertainty carries into the loss models. Rather than over-relying on models, companies need a prudent approach to accumulation management in the underwriting process," summed up Tony Sammur on the seminar takeaways. "By applying more common sense to where you underwrite, an insurer is less vulnerable to the weaknesses of models."

Speakers from AIR, RMS and Karen Clark, Inc. offered insights on the next generation of catastrophe models, but also cautioned on becoming too dependent on their results. Several experts noted that no model could capture the full extent of exposure from an extreme or tail event. The topic of climate change impacts was discussed by Dr. Peter Dailey of AIR as another issue that adds great uncertainty to the models. Gary Kerney from PCS challenged insurers about their ability to estimate loss and service claims, adding that companies often underestimate exposures away from the coast.

Berto Sciolla offered his thoughts on the evolution of the cat market. Cedants and assuming reinsurers have become very sophisticated in how they evaluate and transfer these exposures. Gen Re wants clients to think of it as a thought partner on retention levels and appropriate structures. "Gen Re works with its cat clients to provide appropriate structure, capacity, book analysis and accumulation management tools that can result in a tailored cat program." Sciolla continued, "Even with the most sophisticated cat models and sound underwriting practices, insurers need protection from the unexpected."

Seminar attendees included chief actuaries, underwriters, catastrophe modelers and ceded reinsurance managers from GRI and Gen Re clients and prospects. GRI hosted the event at its headquarters in Stamford, Connecticut on September 9-10, 2008.

For further information about the seminar, please contact Tony Sammur at 203 328 6213 or asammur@genreint.com.

Gen Re Intermediaries (GRI) is a subsidiary of General Re Corporation, a Berkshire Hathaway Company. It is a Stamford, Connecticut based reinsurance intermediary and risk advisor that specializes in delivering global reinsurance market solutions coupled with state of the art risk management analytics. This expertise allows GRI to help Property and Casualty insurance companies optimally manage their catastrophic loss exposure. As a high quality boutique, GRI offers a full array of risk management solutions for the Property Catastrophe, Aviation, Workers' Compensation Catastrophe and Casualty Clash exposures.

General Re Corporation, a subsidiary of Berkshire Hathaway Inc., is a holding company for global reinsurance and related operations which operates under the brand name Gen Re. General Re is one of the leading property/casualty and life/health reinsurers in the world and is represented by a network of 45 branch and subsidiary offices in key reinsurance markets.

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