Rethinking Renewals: Optimizing Reinsurance Purchasing

Demex, a technology-enabled reinsurance solutions provider focused on severe convective storm risk, sponsored an online seminar to familiarize attendees with the firm’s severe convective storm reinsurance product and explain the nuances of traditional reinsurance versus parametric reinsurance. Parametric reinsurance, i.e., index-based reinsurance, indemnifies cedents based on pre-defined payout structures when an agreed upon triggering event occurs. Unique from traditional reinsurance, parametric reinsurance tends to speed up the payment process by linking the severity of an event to financial losses, while eliminating the need for on-site visits, audits and loss adjustment expense.
The online seminar featured Jake Black, president and chief executive officer, Innovated Holdings; Matthew Coleman, president, Reinsurance, Demex; and Joe Petrelli, president, Demotech Inc. The online seminar, in large part, was based upon a recent Demex survey of American Property Casualty Insurance Association and National Association of Mutual Insurance Company members which demonstrated that severe convective storms are viewed as a critical peril due to the ability to impact earnings, ranking ahead of fire, hurricanes and tropical storms, wildfire, and flood.