Treaty Reinsurance Renewal Review 2010

3rd Quarter 2009 was closed by super fantastic loss caused by Earthquake in Padang (30.09.2009).
The reason to state as super fantastic because no body expecting insurance loss will be that much, some (or most) of insurance company make an error in stating PML in purchasing Catastrophe cover and nobody can imagine if this error happend in Jakarta or Wes Jawa (Zone 3).
As an effect of this loss, all reinsurance company increasing their price in Indonesia and also it influenced by frequency of natural catastrophe was increased.
Final review of treaty renewal as below:
1. Adjustable increased as
2. %tage of MDP is increased
3. Price at risk layer relatively consistent
4. Price at Top Layer is expensive, this is because they will compensate their loss in risk layer into Toppest Layer.
Hope this review could assitfull.

fakih wahyudi