April 22, 2023

Liability ( Re ) Insurance

A UK Market Perspective - Special Focus on Underwriting / Peer Review Process

Cathriona Donlon Senior Underwriter Casualty Axis Re Europe

2nd International Istanbul Underwriting Conference 30th September – 1st October 2010

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Axis Re Philosophy

Axis Re is an Exposure Driven underwriting operation. We seek clients who value our Technical Approach to pricing and our focus on the Quality Of Data required ( Karl Mayr )

We focus on traditional underwriting techniques and Close Relationships with our partners ( Mike Morill )

We believe that Transparency in pricing, quality data and Frank Open Dialogue with clients leads to sustainable relationships ( Bill Fischer )

Casualty Reinsurance Underwriting Process

Client Selection Portfolio Profile ( Initial Discussions + Submission

Review ) Mini File Review Reinsurance Structure Slip / Wording Review Pricing Internal Sign Off Process

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Indicator ImpactStrong Market Position

Sound Financials

Buying Motivation / Profit Potential

Technical Underwriting Approach

Strong Internal Process

Portfolio Transparency

Sophisticated Buyer

Strategic Partner

Reputation Issues

Legacy Issues

Client Selection - Key Criteria

Casualty RI Submission – Narrative

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Large Loss Commentaries : Circs / View on Liability / Quantum

Underwriting Controls ( Authorities , Sign Off , Peer Review , Pricing Adequacy / Rate Monitoring / Pricing Tools / Risk Engineers )

Claims ( Reserving Philosophy / Claims Handling Procedures / Team )

Slip / Wording : Exclusionary Language RI Structure : QS V XOL , Attachment

Point , Loss Caps , Reinstatements , AAD / AAL / Loss A.Ps

Executive Summary ( Company ) Management / Key UW Team ( CVs ) Classes Covered Max / Normal Underwriting Limits Historic & Estimated Incomes ( LOB /

Territory ) Underwriting Commentary ( Business Plan

/ Risk Appetite / UW Box / Changes of Note ) Regional Market Overview ( Pricing /

T&Cs / Competitor Landscape ) Hot Casualty Topics ( e.g. F500 , Pharma /

Chem , Asbestos , Terrorism , EMF , Rail , US Exposure , Telecommunications , Recall , Financial Loss , Auto Critical Parts , Multi Year Policies , Binding Authorities , FI / D&O – US Listed / ADR )

Casualty RI Submission – Data

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Historic Treaty Results ( RI Inc LRs ) Risk Profiles ( Line Size / Attachment Bands /

Premiums ) Risk Lists ( Key Sectors / Top Line Utilization /

Aggregation Potential ) Claim Triangulations Cedant ULR Projections Primary Rate Change (Historic and Projection)

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Audit: What Value Added?

RI Underwriter• Portfolio Transparency• Fresh Market Knowledge• Reinsurance Structure / Deal Refinement

• Client / Broker Profile• Cycle Management• Client Benchmarking

Reinsurance Company

Cedant• Feedback• Additional Technical Expertise• Refined Reinsurance Pricing

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How to Audit - Axis Re Style !

Step 1

Set File Review Objectives Decide Audit Team ( UW , Actuary , Claims ) Scrutinize Updated Portfolio List Select Representative File Selection Communicate Selection & File Pick Rationale

Step 2 Opening Discussion with Client Case by Case Risk Review (See Handout 1) Summary Risk Specific Findings Pre Client Feedback Audit Team Discussion

Step 3

Discuss Individual File Findings with Client Agree Overall Findings / Recommendations Agree Follow Up Document Files / Communicate Feedback (See Handout 2)

Axis Underwriting Worksheet ( Sample )

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Axis Underwriting Worksheet ( Sample )

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Axis Underwriting Worksheet ( Sample )

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Special Acceptance – Basic RI Info Requirements ( KISS! )

Reason for Special Acceptance Risk Description / Exposure Profile including high

hazards Cedant Layer / Line / Pricing Special Terms / Conditions Basic UW Rationale Original UW Submission / Slip ( Optional ! )

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Axis Re Contacts

Market Responsible

Andew BissetSenior Vice President Reinsurance AXIS Re EuropeBrandschenkestrasse 90CH-8002 Zürich

Phone  +41 44 567 01 50  Fax      +41 44 567 0100 Email   andrew.bissett@axiscapital.com Web     www.axiscapital.com

Casualty Underwriter

 Cathriona DonlonSenior Underwriter Casualty Vice President- Reinsurance AXIS Re EuropeBrandschenkestrasse 90CH-8002 Zürich

Phone  +41 44 567 01 33 Fax      +41 44 567 01 00Email   cathriona.donlon@axiscapital.comWeb     www.axiscapital.com

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