We have applied our risk quantification method at group level, and also at business unit level, in order to better allocate risks and transfer pricing through the whole organisation.

• One of our clients, a major telecommunications company, wanted to restructure its reinsurance programme : our methods enabled to validate the deductibles and limits for recurrent losses by assessing their statistical distribution and the maximum exposure at a given confidence interval. We also presented our results to major reinsurers in order to obtain the best conditions for our client and to facilitate negotiations.

• A client wanted to review its captive programme : our approach led to the restructuring of the captive after we had carefully analysed all the risks included. We positioned the captive in the reinsurance structure so that an important layer of the risks could be taken by the captive. At the same time, however, we avoided exposing it to the risk of catastrophic losses or of having to face recurrent losses with increasing frequency. Finally, we evaluated the level of reserves necessary for the captive to reach a level of economic capital such that the probability of default was reduced to below 1%.

• An insurance company asked us to optimize its reinsurance programme : we performed a full analysis of its portfolio in order to identify the reinsurance structure that would limit the cost of reinsurance while maintaining the volatility of the retention below a given level. Our analysis enabled our client to restructure its reinsurance programme.

• A manufacturing group was willing to allocate the costs of its worldwide insurance programme : our risk analysis was done at business units level and the results allowed to determine the cost of risk transfer applicable to each business unit. The group could then set up and justify a premium allocation.