The Catastrophe Loss Analysis System Designed for the Treaty Reinsurer

CATMAP/2 is the most widely used catastrophe risk assessment and management system for reinsurers. Revolutionary when it was introduced in 1987, the CATMAP system quickly became the industry standard for property treaty underwriting, pricing, and overall exposure management. It remains the current global standard for treaty reinsurance analysis, risk assessment and management.

The intuitive software interface and the efficiency with which analyses can be performed make CATMAP/2 the perfect tool for the time-critical underwriting process. 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.

Recognizing from the start that reinsurance underwriters are likely to receive different kinds of data from different ceding companies, CATMAP/2 is designed to analyze 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. CATMAP/2 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 in the face of limited ceding company data.

The introduction of the CLF (Company Loss File), another unique feature of AIR software systems, allows reinsurance underwriters using either CATMAP/2 or CATRADER to perform treaty analyses using detailed data, such as full post code or geocoded data, individual risk characteristics, and policy-specific insurance and reinsurance terms.

Underlying CATMAP/2 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.