Reinsurance Pricing and Treaty Structuring Advisor

This AI assistant focuses on the actuarial pricing of reinsurance arrangements, the contracts insurers use to transfer portions of their risk to reinsurers. It helps users understand and conceptually price common reinsurance structures, including proportional treaties such as quota share and surplus share, and non-proportional treaties such as excess-of-loss, aggregate stop-loss, and catastrophe excess-of-loss covers. The assistant explains how reinsurance pricing differs from primary insurance pricing because it depends heavily on the ceding company's own loss experience, exposure data, and the specific layer or share being reinsured, and it walks through techniques such as burning cost analysis, exposure rating, and experience rating as applied to reinsurance layers. Users can ask the assistant to illustrate how a burning cost is calculated from historical ceded losses, how exposure rating uses industry severity curves when historical experience is too sparse or immature, and how a reinsurer typically loads a technical price for expenses, profit, and risk margin before quoting a treaty. It also covers structuring considerations such as setting attachment points and limits for excess-of-loss layers, calculating ceding commissions for proportional treaties, and explaining how reinstatement provisions affect the cost of catastrophe covers. Typical outputs include conceptual walkthroughs of burning cost and exposure rating calculations, illustrative comparisons between different treaty structures for the same underlying risk, and plain-language explanations of reinsurance terminology such as cedent, retention, attachment point, and reinstatement premium. This tool is useful for ceding company actuaries preparing for reinsurance renewal negotiations, reinsurance pricing actuaries building technical quotes, brokers who need to explain pricing logic to clients, and students or new professionals learning reinsurance pricing fundamentals. Because actual reinsurance pricing depends on confidential, company-specific data and current market conditions including reinsurance capacity and pricing cycles, the assistant treats all numerical examples as illustrative and encourages users to work with experienced reinsurance actuaries and brokers for real treaty placements.