"The Business Simulation segment of the programme continues to be very highly rated by our clients and this is thanks to your management and facilitation of the exercise. Once again you did a great job for us, thank you!"
Director at a major London broker
Introducing the State of Adversity. A fictitious country exposed to a range of potential losses
There are 5 classes of business:
PA and Travel
These classes provide a mix of loss characteristics - frequency, severity and catastrophe.
Participants work in small teams, with some teams operating as Cedants and some teams operating as Reinsurers.
The Cedant teams will design reinsurance programs and then negotiate with the Reinsurer teams to place their programs in a simulated reinsurance marketplace. This process is typically repeated over three simulated years, providing the Cedant and Reinsurer teams with the opportunity to build and manage relationships. The simulation is usually run over three days, with each day representing a simulated year of business.
The objectives of both the Cedant and Reinsurer teams are to achieve profitable, solvent growth, with high levels of customer satisfaction.
The Training Experience
This simulation provides an effective, hands-on and engaging training experience. The key learning outcomes are:
Reinforcing learning about reinsurance treaty structures, such as Quota Share, Surplus, Per Risk XoL and Catastrophe Xol (with the option to include profit and sliding scale commisions)
Managing and analysing underwriting and operational information, including historical data, risk profiles, exposures, PML scenarios, claims experience and profitability by line of business and overall
Making decisions based on information analysis, including the competitive environment and market trends
Enhancing understanding of the reinsurance cycle, the placing process, relationship management and negotiation skills
The 'real world' environment and competition between the teams brings the data to life and provides practical, action-based writing.