Some cargo insurers have growing concerns about how to manage peak shipment values coming from a single contract. Now they don’t have to worry: We came up with a facultative solution that allows our clients to write the whole risk and, at the same time, manage the volatility in their book. Read the full blog post here: http://www.genre.com/knowledge/blog/how-facultative-reinsurance-can-help-ocean-marine-insurers.html

1. How can Facultative reinsurance help Ocean Marine insurers optimize
their use of capital and write new accounts?
OceanMarine
case
study

2. Our Ocean Marine clients often have concerns about
managing peak shipment values coming from a single policy.

3. $10m
$20m
$15m
$30m
$25m
$5m
What if commodity prices spike mid-term?
$27.5
$21.5
$24
$20 $19.5
$22
$17.5
$28 $27.5
$12.5

4. What happens when
a freight forwarder switchesto fewer butlarger shipments to
achieve economies of scale?

5. %
Cargo insurers may set their line size based on these potential peak
exposures – and settle for a smaller percentage of the account.

6. we recently worked witha
client witha maximum capacity
of $20 millioninterested in
writing a new cargo account
where some of the shipments
reach $30 million in value.
For example,
$20m
$10m

7. They didn'twant to walk
away from it and lose out
on potentially profitable
business.

8. They considered signing down the line
and premium share of the account.
$

9. But this wouldn’t actually reduceor remove their exposure to
volatility, only the dollar amounts involved. It would also force them
to rely on their competitors to complete the placement.
$15m$15m

10. We came up with a solution to allow them to maximize
their upside and manage volatility.

11. We provideda $10 million
excess of $20 millionlayer to
cover the peak shipments via
an open cover arrangement.
They were able to write
the whole risk usingour
facultative supportto
transfer the peak values.
$20m
$10m

12. 100%
This is an example of Gen Re’s facultative solutions providing
the most efficient risk transfer to our customers.

13. Sydonie Williams
Contact us:
Facultative is one of the many strategic
tools we provide that maximize our
clients' flexibilityand control.
Whether you’re looking for insight on
an emerging issue,underwriting
expertise or perspective on a large loss
or technical issue, we’re here to help.
© 2014 General Re Corporation | This presentation is intended to provide background information to our clients and professional staff.
It is time sensitive and may need to be revised and updated periodically.
/in/sydoniewilliamsin+1 203 328 5745p sydonie.williams@genre.come t @SydonieWilliams