02 03 05+understanding+reinsurance
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R. Michael Cass, CPCU, AReMike Cass is President & Principal Consultant for R.M. Cass Associates, an independent consulting firm nowlocated in Chicago, Illinois. Formed in 1987, the practice emphasizes reinsurance and related matters. Prior toforming his consulting practice, Cass obtained extensive industry experience with insurance, reinsurance companiesand a Lloyds broker. He has functioned as both manager and officer. Cass has served as an arbitrator in over 40disputes involving insurance and reinsurance issues. He is a member of the American Arbitration Associations Panelof Neutrals and ARIAS-US and is a certified arbitrator.
Since the inception of his practice, Cass has devoted a significant part of his activities to assisting liquidators invarious domiciles as well as run off operations. These services relate to technical consulting, expert witness activityand as an arbitrator and umpire. He is a graduate of Penn State University and Temple University School of Law.Cass is a member of the New York Bar, a Chartered Property and Casualty Underwriter, ARe and an AccreditedInsurance Receiver Reinsurance.
Cass is a former chair of the ABA Tort and Insurance Practice Sections (TIPS) Committee on Excess, Surplus Linesand Reinsurance. He is also past chair of that Sections International Committee and has served as the TIPS liaisonto the Central and Eastern European Law Initiative. Cass is also active in the CPCU Society. He is past chair of theSocietys Risk Management Section Committee and former member of the Excess, Surplus and Specialty LinesSection Committee. He currently chairs the CPCU Societys Reinsurance Interest Section Committee. Cass is thecurrent president of the Illinois Captive and Alternative Risk Funding Insurance Association.
In addition to various speaking engagements and professional articles on reinsurance and related areas, Cass hascontributed to an industry treatise and textbook. He is chapter author of Reinsurance Contract Wording, (StrainPublications) and contributing author and editor of Reinsurance Practices, Second Edition (Insurance Institute of
America) , and the textbook for the ARe 142 program.
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Kelli M. Kukulka, CPCU, ARe
Kelli Kukulka is a Vice President for the Agricultural Department of American Re-InsuranceCompany located in Chicago. Kelli began her insurance career in The Hartfords Livestock Department. She works with agricultural clients on a national basis, and is responsible for treatymarketing and underwriting, and individual risk facultative for agriculture specialty risks. Kelli hasmore than fifteen years of experience in agricultural insurance, has earned the designations of CPCUand ARe and is the Past-President of the Chicago Chapter of the CPCU Society. Ms. Kukulkamaintains memberships in the Animal Transportation Association, CPCU Society, Crop InsuranceResearch Bureau, Livestock Exporters Association and the National Association of InsuranceWomen. Kelli was raised on a farm in Central Illinois and holds a Bachelors Degree in Agriculturefrom the University of Illinois.
Kelli teaches reinsurance classes for the Insurance School of Chicago and speaks at various insuranceseminars. She has been a national committee member of the CPCU Reinsurance Interest SectionCommittee since 2003. Kelli stated she began her service to the CPCU Society to developrelationships outside her technical specialty. Since we live in a constantly evolving businessenvironment, it is helpful to extrapolate developments in other sectors of insurance and reinsuranceinto those that affect my own area. In effect, those relationships have become my underwritingcrystal ball.
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Thomas M. Pavelko , JD, CPCU, ARe
Tom is the contracts and regulatory attorney for American Agricultural Insurance Company in Park Ridge,Illinois. He has held this position for six years and has worked for American Ag for seven years. American Ag
was created in 1948 to provide reinsurance for Farm Bureau insurance companies, but subsequently diversifiedand has become a major reinsurance provider in the United States and various international markets. Prior to
joining American Ag, Tom was in private law practice in Illinois and Missouri for 15 years, concentrating ininsurance defense litigation.
Tom received his ARe designation in 1999 and his CPCU designation in 2000 at the San Antonio, TXconferment. He is active in the Northwest Suburban Chicago chapter, currently serving as one of its directors.
Tom joined the Reinsurance Section Committee in 2001. He also serves on the Laws Committee of the NAII.He was graduated from Marquette University with a Bachelor of Arts degree and a political science major. Hereceived his Juris Doctor from Washington University School of Law in St. Louis.
When Tom joined the Reinsurance Section Committee, he said that he wanted to become a member to betterhimself, promote the CPCU Society and perhaps bring some benefit to his fellow members. He has quicklylearned that membership brings excellent networking benefits. I dont get out much. Most of my workdays
are spent behind a desk and in front of a computer, drafting reinsurance treaties or preparing licensing or otherregulatory filings. It is immensely rewarding to attend committee functions and receive cutting edgeinformation from industry leaders.
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INSURANCE INDUSTRYBASICS
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WHY COMPANIES PURCHASE REINSURANCE
a. Capacity
b. Stability
c. Catastrophe protection
d. Surplus relief
e. Underwriting expertise
f. Withdrawal from a territory or line of business
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INSURANCE COMPANY RESPONSIBILITIES
1. Capable, and properly-managed staff 2. Payment of state premium taxes3. Maintain all accounting records, as long as
necessary
4. Identify, investigate, and pay valid claims5. Decision-maker in claims decisions6. Cooperate with state insurance departments
during examination7. Cooperate with Internal Revenue Service, SEC,
etc, as appropriate8. Cooperate with reinsurer during claims review
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SEPARATING THE PARTICIPANTS
Sequence The Event The Flow of RiskThe
ContractualExpression
1Policyholders paypremiums to transferrisks
Insurer (A) assumesprimary risks (with orwithout an insurance agent
or broker)
OriginalInsuranceContract
2 As excessive risksceded to reinsurer(s)
Insurance Company Breinsures Company As risks(with or without areinsurance broker)
A & B enter into separatereinsuranceagreement
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10. YOU CAN CLEAR AIRPORT SECURITYDESPITE HAVING A CUT THROUGH
ENDORSEMENT
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SEPARATING THE PARTICIPANTS
Sequence The Event The Flow of RiskThe
ContractualExpression
1Policyholders paypremiums to transferrisks
Insurer (A) assumesprimary risks (with orwithout an insurance agent
or broker)
OriginalInsuranceContract
2 As excessive risksceded to reinsurer(s)
Insurance Company Breinsures Company As risks(with or without areinsurance broker)
A & B enter into separatereinsuranceagreement
3 Bs excessive riskslaid off to Company C
Company B reinsured byCompany C (using areinsurance broker)
B & C enter into a separateretrocessionalagreement
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9. RETROCESSIONAIRE IS NOT A NEW CD BY
MANNHEIM STEAMROLLER
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REINSURANCE INDUSTRYBASICS
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LEVERAGED EFFECT OF
REINSURANCE
INSURERS
REINSURERS
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Geographical Split of Premium Volume
North America,57%
Europe, 34%
Africa, Nearand MiddleEast, 1% Asia and
Australia, 6%
Latin America,2%
Source: IAIS Global Reinsurance Market Report 2003 1 American Re-Insurance Company
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15Source: Reinsurance Association of America American Re-Insurance Company
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16Source: Standard & Poors Ratings Direct January, 2005 American Re-Insurance Company
S&P Reinsurer Rating Changes
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Company 2003 2002 2001 2000 1987 1986 1985 1984
General Re 3,440 3,974 3,960 4,297 2,236 2,477 1,523 1,065
American Re / MARC 1,583 1,169 2,762 3,165 1,682 1,619 1,190 704
Employers Re /GE Re/ Kemper Re@ 4,622 4,644 3,707 3,996 1,556 1,618 1,055 690
Transatlantic / Putnam @ (AIG) 3,100 2,337 1,764 1,533 305 257 192 133
Converium Re/Zurich Re Center 764 1,064 839 960
Everest Re / Prut Re 2,965 2,119 1,361 1,211 692 679 487 450
Swiss Re Group@ 1,989 1,283 1,647 2,067 648 737 588 496
Gerling Global @ 479 760 898 235 225 142 134
The St. Paul Cos. 1,615 1,251 413 334
Hartford Re/Endurance 424 703 849 826
SCOR Re 348 637 598 624
Odyssey America (TIG Re) 1,911 1,493 892 609
CNA Re / Folksamerica Re @ 889 679 685 951
Berkeley Ins Co. 1,397 940 1,217 445
National Indemnity 2,741 2,666
Partner Re 1,041 755 500 369
TOP U.S. REINSURERS (NPW in $ Millions)
Source: RAA Reinsurance Association of America@ Includes other group members data for 2000 - 2003 American Re-Insurance Company1
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GROSSPREMIUMS/RISKS
LESS
INURING
REINSURANCE
GNPI / RETAINED RISKS
GROSSINCURRED
LOSSES
LESSINURING
REINSURANCE
NET
RETAINEDLOSS
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TYPES OF REINSURANCE
FACULTATIVE: Each risk is individually reinsured Reinsurer accepts or rejects each individual risk Could be either pro rata or excess of loss
METHODS OF RISK SHARING IN REINSURANCE : PROPORTIONAL
Quota share
Surplus share NON-PROPORTIONAL Per risk Per occurrence (Catastrophe) Aggregate excess (Stop Loss)
TREATY:
Automatic reinsurance of agreed upon segment of direct business written
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8. FOLLOW THE FORTUNESHAS NOTHING TO DO WITH
LEPRECHAUNS, RAINBOWSOR A POT OF GOLD
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TYPES OF REINSURANCE
Facultative
Optional cession/recovery Optional acceptance Risk specific rating; individual
risk underwriting No continuing relationship; no
expectation of pay-back No profit sharing More volatility (higher
risk/return profile)
Separate contract: eachreinsurer
Treaty
Mandatory cession/recovery Mandatory acceptance Overall class rating; no
individual risk underwriting Long-term relationship and
commitment; some expectationof pay-back over the long run
A profit sharing arrangement(sliding scale or contingent)included in pro rata; swing ratein working excess treaties
Single contract: all reinsurers Seldom any ECO/XPL cover Each reinsurer supplies
coverage contract Usually ECO/XPL cover expected Only one ultimate reinsurance contract
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Excess of Loss Illustrated
Reinsured Excess Losses
Loss Data
Retention
Limit
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Excess of Loss Illustrated
Cede Retention
ReinsuredExcess Layer
Cede Retention
D o l l a r
L o s s
$0
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Typical Reinsurance ArrangementsBusiness Corporations or
Associations SeekingInsurance Protection
Including Risk Retention ActPurchasing Groups
Using (optional)Agents or Brokers
With (optional) SubstantialDeductible Layer Retained
Policy-WritingInsurance Company(ies)
Selecting (optional)Reinsurance Intermediaries
Reinsurers
Retrocessions With the Sameor New Reinsurance
Broker
Self-InsuredPlan to RetainPart of the
Insured Risk
Excess PolicyWriting Company
AboveRetention
Risks in a
ControlledInsuranceSubsidiary
Including Risk Retention Groups
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ACCOUNTING
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SIGNIFICANT ACCOUNTINGHISTORICAL POINTS
1881 1913 1933 1939 1974 1981 1993 1995
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WRITTEN PREMIUM DEVELOPMENT:
SURPLUS PENALTY
SURPLUSPENALTY
UNEARNED
EARNEDCOST
TIME
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7. YOUR COLLEGE
ACCOUNTINGTEXTBOOK
MATCHEDEXPENSES WITH
REVENUES
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P & C ACCOUNTING TRANSACTIONSDirect
(Primary)Reinsurance
AssumedReinsurance
CededNet
PREMIUMS
Written
UPR Change
Earned
Direct(Primary)
ReinsuranceAssumed
ReinsuranceCeded
Net
LOSSESINCURRED
Paid
Case Reserves
IBNRL
TOTAL
Direct(Primary)
ReinsuranceAssumed
ReinsuranceCeded
Net
EXPENSESINCURRED
+ / - Reserve Change
Paid
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6. YOU WILL NOT FIND A BORDEREAUX BETWEEN BORDER
N AND BORDER P
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LEGAL
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SEPARATING THE PARTICIPANTS
Sequence The Event The Flow of RiskThe
ContractualExpression
1Policyholders paypremiums to transferrisks
Insurer (A) assumesprimary risks (with orwithout an insurance agent
or broker)
OriginalInsuranceContract
2 As excessive risksceded to reinsurer(s)
Insurance Company Breinsures Company As risks(with or without areinsurance broker)
A & B enter into separatereinsuranceagreement
3 Bs excessive riskslaid off to Company C
Company B reinsured byCompany C (using areinsurance broker)
B & C enter into a separateretrocessionalagreement
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5. ISO WILL NOT
SEND YOUFILL-IN-THE-BLANK
REINSURANCE
CONTRACT FORMS
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CONFIRMING THE CEDENT AND REINSURERSINTENT
A. Mutually shared understanding during negotiations1. Verbal communications2. Confirming letters
B. Broker of record letter, where applicableC. Cover note, placement slip, cover slip issueD. The contract itself E. Subsequent amendmentsF. Each partys responsibilities after cancellation
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4. UTMOST GOOD
FAITH IS INCLUDED AT NO EXTRA CHARGE
BROKER OF RECORD LETTER
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BROKER OF RECORD LETTERCOMPANY
TO WHOM IT MAY CONCERN:
We have appointed the firm of Cass & Pavelko, Inc., 1 Palatial Dr.,Chicago, Illinois, to act as our sole representative for the negotiation of reinsurance for our Companys Property business.
We ask that you recognize Cass & Pavelko, Inc., as our authorizedrepresentative , and that any proposal which you may consider besubmitted through them. Any prior negotiations with respect toreinsurance for our Property business have now been concluded.
Very truly yours,COMPANYBy ______________Title_____________
COMPLIANCE PROCEDURE
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COMPLIANCE PROCEDUREN.Y. STATE INSURANCE DEPARTMENT
REGULATION 98
1. An Authorization Form will be obtained from all reinsurers with whom we dobusiness and all ceding companies on our address list with whom we are transactingnew, renewal or continuous business.
2. An Authorization Form will also be obtained from each principal, participating as amarket through a pool, association or agent. Alternatively, a letter from the InsuranceDepartment confirming that the agent is exempt from Regulation 98 will beacceptable.
3. The Market Security Committee will maintain current financial statements onall reinsurers assuming business through us, for review by ceding companies ontheir request.
4. As has been done in the past, premium and loss funds will be kept in separateaccounts distinctly labeled as fiduciary funds and will not be commingled withgeneral operating funds. The Authorization Form will include a paragraph
authorizing us to retain the investment income from premium and loss accounts5. Each authorization form that we send to clients and markets will include disclosureof our affiliated companies
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COMPLIANCE PROCEDUREN.Y. STATE INSURANCE DEPARTMENT
REGULATION 98 (CONTINUED)
6. We will obtain and keep on file written evidence of reinsurers assumptionof risk for each contract in the form of Confirmation slips and/or Interestsand liabilities Agreements.
7. Any reinsurance contract made with a reinsurer not licensed or accredited inNew York will include a service of suit clause, naming an agent for serviceof process in New York.
8. Whenever we place a specific retrocession for a reinsurer in conjunctionwith a reinsurance placement, Broker will provide the ceding company witha brief description of the retrocession, the retrocessionaires, thecommissions earned by Broker on the transaction, and the reinsurer forwhich the retrocession was made. Accounts-persons will provide continuingadvices to the ceding company and reinsurer of changes in the originalretrocession.
9. All correspondence, cover notes, binders, contracts, authorizationforms, and accounting records will be maintained for at least 10 yearsafter termination of a contract.
10. Current Files will be maintained centrally on Authorization forms andcompliance will be internally monitored. Accounts-persons will remedyspecific compliance problems with clients and markets as they occur.
CLIENT INSURANCE COMPANY
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CLIENT INSURANCE COMPANYDallas, Texas
BusinessReinsured: Fire, Allied Lines, Homeowners, Mobile Homeowners, and Boat
owners. Multiple Peril (property perils only), Automobile Physical Damage(excluding collision), Commercial Multiple Peril (property perils only, includingproperty perils of Business owners policies), Inland Marine and Glass. In force,new and renewal.
Excess Catastrophe Reinsurance ContractEffective: January 1, 2005Reinsurance Confirmation
Term: Effective January 1, 2005, with respect to losses arising out of loss occurrencescommencing on or after that date, through December 31, 2005. Extendedexpiration in the event a loss occurrence is in progress at expiration.
Territory: USA, its territories or possessions, Puerto Rico, D.C., and extra-territorial limitsof the Companys policies.
Exclusions: See attached Retention & Limit: Based on the Companys ultimate net loss each occurrence. Layers,
retentions and limits as set forth in the attached Schedule A.Reinstatement: One Full reinstatement for each layer, as set forth in Schedule A, with
additional premium calculated 100% as to time and pro rata as to amount.Ultimate Net Loss: Loss adjustment expense included.Loss Occurrence Definition: See attached. Loss Notice and Settlements: Individual loss notices and settlements.
P i b d d h l d %
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Premium: Rates based on net earned premium, with NEP to include Homeowners at 65%.Rates, annual deposit premium and annual minimum premium as set forth inSchedule A. Annual deposit premium for each layer payable in four equalinstallments on January 1, April 1, July 1 and October 1, 2005. Adjusted within60 days after the end of the contract term.
Subject Premium: Estimated subject net earned premium for the period January 1, 2005through December 31, 2005 is $12,000,000.
Other Provisions: Salvage and Subrogation Offset (BRMA 36C)Access to Records (BRMA 1D) Net Retained Lines (BRMA 32B)Errors and Omissions Currency (BRMA 12A)Taxes (BRMA 50B) Federal Excise Tax (BRMA 17A)Insolvency ArbitrationService of Suit (BRMA 49C) Intermediary (BRMA 23A)Unauthorized reinsurers (Evergreen LOC for outstanding losses/LAE)
Brokerage: 10.0% of ceded reinsurance premium, 5% on reinstatement premium
Allocation of Final Shares:The company shall have the right to review all authorizations and the fullauthority to allocate final shares . Such decisions will be at the sole discretion of theCompany and may result in other than a proportional sign down of authorization. Asrespects sign downs within the London marketplace, the final allocation of shares toindividual companies or syndicates may not be proportionate to the originalauthorizations.
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3. BRMA IS NOT A
COUNTRY INSOUTHEAST ASIA
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TYPICAL EXCESS REINSURANCE TREATY WORDINGHEADINGS (ALPHABETIZED )
A. Access to Records
B. ArbitrationC. Classes of Business ReinsuredD. Definitions
Accident/Occurrence Each Line of Business Excess of underlyingpolicy limits judgments - Loss adjustment expense Net retained line
To indemnify or To be liable to pay Ultimate Net LossE. Errors and OmissionsF. Exclusions, Including Reinsurance Assumed BusinessG. InsolvencyH. IntermediaryI. Loss Reports, Loss Settlements, Reinstatement
J. Premium Reports, Premium Base, Offset, Taxes, Currency, DividendsK. Retention and LimitsL. Salvage/ SubrogationM. Term and CancellationN. Territory
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ORIGINALPOLICY
COVERAGE
XPL
ECO
EXTENSIONS OF COVERAGE
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2. KEEP THIS ON
THE QT, BUT ECO AND XPL CAN BEINCLUDED IN UNL
INTERESTS AND LIABILITIES AGREEMENT
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THE SHARE OF THE SUBSCRIBING REINSURER IN THE INTERESTS AND LIABILITIES OFTHE REINSURER WITH RESPECT TO SAID CONTRACT SHALL BE SEPARATE ANDAPART FROM THE SHARES OF THE OTHER REINSURERS AND THE INTERESTS ANDLIABILITIES OF THE SUBSCRIBING REINSURERS SHALL NOT BE JOINT WITH THOSEOF THE OTHER REINSURERS AND THE SUBSCRIBING REINSURER SHALL IN NOEVENT PARTICIPATE IN THE INTERESTS AND LIABILITIES OF THE OTHERREINSURERS.
It is hereby agreed by and betweenCLIENT INSURANCE COMPANY
DALLAS, TEXAS (Hereinafter referred to as the company)
And
COSMOS REINSURANCE COMPANYNEW YORK, NEW YORK(Hereinafter referred to as the subscribing reinsurer)
THAT THE SUBSCRIBING REINSURER SHALL HAVE A35% SHARE IN THE INTERESTS AND LIABILITIES OF THE REINSURER AS SET FORTH IN THE ATTACHED
CONTRACT ENTITLED:COMBINED EXCESS PER RISK AND EXCESS CASUALTY REINSURANCE CONTRACT
EFFECTIVE: OCTOBER 1, 2005This agreement shall become effective at October 1, 2005, and shall continue in force until terminated in accordance with theprovisions of the attached contract.
In witness whereof, the parties hereto by their respective duly authorized officers have executed this agreement as of thedates under mentioned at:
Dallas, Texas, this __ day of ______ 2005 ____________________________CLIENT INSURANCE COMPANY
New York, New York, this __ day of ______ 2005 _______________________________
COSMOS REINSURANCE COMPANY
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ARBITRATION PARTIES
CEDINGINSURER REINSURER
UMPIRE
ARBITRATOR ARBITRATOR
DISPUTE
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VERIFYINGRECORDS
Courtesy Prof. Bruce Evans
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UNDERWRITING
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Reinsurance UnderwritingProcess -- Treaty
A. Property vs. CasualtyB. Pro-Rata vs. ExcessC. Underwriting Considerations
Check the cedents retention levels, required per risk capacity, growth
plans, the financing that would be required, any change in the currentbusiness mix and impact of returned reinsurance unearned premiumreserves.
What policy limits may be extended by individual company underwriters?
Are the current treaty exclusions being adhered to? What facultative risksare separately reinsured? Are these peak lines; under priced submissions?Is the treaty over-protected?
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Reinsurance UnderwritingProcess -- Treaty
D. Claims, Actuarial, Information Systems, etc. ConsiderationsTrace the typical claim from notice through investigation, analysis,original reserving level, loss settlement process, use of outside experts,etc., through to loss settlement. Is a bad faith or excess judgment claima real possibility?
Can a transactions review discover proper recording of premiums,losses, etc. What is the cedents record in prompt payment of reinsurance premiums, notice of individual claims to reinsurers, tracing
property exposures by zip code, gulf coast tiers, etc.?
Overall, is the communication within the cedents departments clear andtransmitted to those who need to know the information?
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Reinsurance UnderwritingProcess -- Treaty
E. Sources of Underwriting DataPast 5 NAIC Annual Statements plus current Expense ExhibitCopy of Audited Financial Statement or Annual ReportCopy of Latest State Examination ReportCopy of IRIS Results (Early Warning Tests)Copy of 10-K (if filed with SEC)Copy of Loss Reserve CertificationCopy of A.M. Bests Report
Copy of Current Reinsurance ContractsSpecimen Copies of any specialty type policies, (not Bureau)Copy of Underwriting Manual/Line GuideInterviews with Underwriting, claims, etc. personnel
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Texas Champion Insurance CompanyPending Inventory
Claim # Insured Name Coverage TypeLoss
DateLoss
ReportDate
PendingReserve
LawSuit
ExpenseYTD
Rein.Report
A-042-01 Rock Truck Ramblers Commercial Auto ABI 2-1-00 2-29-00 350,000 Yes 29,471 4-11-01
L-234-01 As The World Turns General Liability OBI 10-13-01 10-23-01 2,500 No 345,000 ---
L-662-01 Ivory N. Soap General Liability OBI 2-23-00 5-12-01 100,000 No 3,331 12-9-01
L-235-91 Bearcat Industries General Liability OBI 10-8-91 10-7-93 1,000 Yes 43,000 10-8-01
W-441 Big Sky Stop & Rob Workers Comp WC 6-11-94 6-12-94 5,000,000 Yes 980,000 10-17-02
A-079 Wild and Wooly Auto Commercial Auto ABI 7-7-97 9-7-97 25,000 Yes 57,995 ---
H-223 Thai-Xie Hung Homeowners Sec.II
5-10-93 1-2-01 2,500 Yes 18,656 ---
E-001 Gettem Auction Sales Errors andOmissions
E&O 4-1-01 4-22-01 1 No 22,222 ---
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National Atlas of the United States and The National Atlas of the United States of Americaare registered trademarks of the United States Department of the Interior.
Last modified 11:00:00 May 21, 2002
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Florida and Texas Suffered theMost Hurricane Damage
Return Period (Yrs) AnnualAverage
% of TotalState 100 25 10
Florida 39,700 8,000 3,100 1,423 49.5
Texas 16,400 4,600 1,000 615 21.4
Three Other Gulf Exposed States
15,300 2,300 530 334 11.6
Three OtherAtlantic ExposedStates
8,900 2,100 311 235 8.1
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2004 CAT ranking by insured lossesDate Country/Region Event Fatalities Economic
Loss US$ mInsured Loss
US$ m
9/7-21 USA/Caribbean Hurricane Ivan 125 20,000 11,700
8/11-14 USA/Caribbean Hurricane Charley 32 21,300 7,600
9/1-9 USA/Caribbean Hurricane Frances 39 8,400 4,700
9/15-29 USA/Caribbean Hurricane Jeanne 2,000 6,600 4,500
9/6-8 Japan/South Korea Typhoon Songda 41 6,000 3,000
10/19-21 Japan Typhoon Tokage 80 2,500 1,100
8/22-31 Japan/Guam Typhoon Chaba 16 2,000 950
5/21-27 USA Tornadoes 4 1,100 800
5/29-6/2 USA Tornadoes 10 700 500
10/23 Japan Earthquake 39 28,000 450
Source: 2004 NatCat SERVICE , Munich Re
As at 12-28-2004 updated 1-3-2005 American Re-Insurance Company
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1. "Cats" ARE NOT AN Andrew Lloyd Webber
MUSICAL.
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MISUNDERSTANDINGREINSURANCE?
HOW COULD THAT EVER HAPPEN ?
YOURS TRULY, Mike Cass
Kelli Kukulka
Tom Pavelko