The Catastrophe Loss Analysis System Designed for Reinsurers, Direct Insurers, and Financial Intermediaries

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.

For the reinsurer, CATRADER provides the same analytical efficiency, intuitive software interface, and system features as CATMAP/2, but the analyses and resulting output are considerably enhanced. 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.

For the direct insurer, CATRADER allows the easy integration of results generated from a detailed CLASIC/1 or 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.