CATRADER^® is the tool selected by sophisticated global reinsurers, direct insurers, and financial intermediaries for performing comprehensive catastrophe loss analyses using aggregated exposure data. Companies around the world rely on this system for assessing and pricing catastrophe risk transfer alternatives.

CATRADER for Reinsurers

Reinsurance underwriters can quickly estimate the loss potential on all types of property treaties as well as entire portfolios of treaties. Determining the incremental impact of an individual treaty on an existing book of business can also be accomplished with a single keystroke. Gross losses as well as losses net of retrocessions are readily available within the system. This makes the decision-making process with respect to property treaty pricing and participation extremely efficient.

CATRADER includes a wide variety of probabilistic and historical event catalogs, information on event seasonality, and the ability to analyze treaties of varying duration. 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.

Recognizing that risk assessment and quantification may be performed based on widely varying detail regarding the underlying risks, CATRADER is designed to enable the reinsurer 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 of 30 modeled countries. These databases incorporate local building and construction practices and other region-specific details to ensure the most accurate analyses possible.

Using a CLF™ (Company Loss File), the export file from a CLASIC/2™ detailed loss analysis, reinsurance underwriters can perform treaty analyses based on the cedant’s actual locations, building characteristics, and policy terms rather than on industry averages.

CATRADER for Direct Insurers

For the direct insurer, CATRADER allows the easy integration of results generated from a detailed CLASIC/2™ analysis into a corporatewide risk profile, enabling the development of catastrophe risk strategies at the company, division, or profit center levels. This facilitates not only the allocation of corporate reinsurance costs to the appropriate divisions, but also the definition and reinforcement of divisional strategies designed to protect the corporate risk position. In addition, because CATRADER includes total industry exposures and corresponding industry losses, it is an excellent tool for calculating market penetration rates, investigating growth strategies, evaluating potential mergers and acquisitions, performing peer company analysis and basis risk analysis.

CATRADER for Financial Intermediaries

Financial intermediaries use CATRADER to structure and evaluate securitized transactions, such as catastrophe bonds, as well as industry-loss and parametric-based products. Investors use CATRADER to analyze the risk in catastrophe-linked financial instruments. With the ability to efficiently quantify the incremental impact to estimated losses of a single contract, companies can monitor the correlation between contracts and test a variety of hedging strategies.

Underlying CATRADER are the same leading-edge natural hazard models that support all AIR software applications. This ensures consistent results among all companies using AIR modeling technology and enables efficient global data exchange.

More about CATRADER^®

 

©2008 AIR Worldwide Corporation. All rights reserved

Privacy Policy | Conditions of Use