CATRADER® is the industry standard for analyzing reinsurance contracts and insurance-linked securities. Reinsurers, insurers, reinsurance intermediaries, and investors across the world rely on CATRADER for analyzing and pricing catastrophe risk transfer alternatives.
Reinsurers can quickly estimate the loss potential on all types of property treaties as well as entire portfolios of treaties. Gross losses as well as losses net of retrocessions are readily accessible, which greatly streamlines the decision-making process for property treaty pricing and participation. Gross, ceded, and net retained loss estimates are provided by event in a format suitable for supporting the structuring of various risk transfer options, whether they are traditional reinsurance structures or alternatives, such as catastrophe bonds and industry-loss or parametric index-based products.
The Industry-Standard Application for Reinsurers
Recognizing that risk assessment and quantification may be performed based on widely varying detail regarding the underlying risks, CATRADER is designed to enable reinsurers to take advantage of all types of exposure information, including premium, risk counts, and sums insured. In fact, an important feature of the system is its ability to analyze the loss potential on an individual contract even when the ceding company provides no actual exposure data. CATRADER accomplishes this by accessing AIR’s proprietary high-resolution databases of property values specific to each modeled country. These databases incorporate local building and construction practices and other region-specific details to ensure the most accurate analyses possible.
An Essential Tool for Insurers
CATRADER is especially useful to insurers in guiding their reinsurance purchasing decisions. The full range of reinsurance program structures can be modeled explicitly in CATRADER and insurers can view analysis results on both a gross and net basis. CATRADER also allows insurers to perform benchmarking both to competitors and the industry, by using a detailed database of industry losses and AM Best Premium data to calculate market share. CATRADER is therefore an excellent tool for calculating market penetration rates, investigating growth and retraction strategies, evaluating potential mergers and acquisitions, and performing peer company analysis.
The Industry-Standard for Analyzing Insurance-linked Securities
CATRADER is also the industry standard for issuers of and investors in catastrophe bonds and other insurance-linked securities. CATRADER allows both issuers and investors to quantify and manage their risk associated with these assets. Using AIR’s CATRADER software, potential investors can analyze cat bonds and other instruments as they are announced, so that they can accurately assess the risk before deciding to invest. CATRADER also includes an extensive database of currently outstanding insurance linked securities to allow users to identify trading opportunities.