Optimising non-life reinsurance strategy under risk-based capital measures

This paper explores the possible impact of risk-based economic capital and ERM frameworks on a non-life insurer’s reinsurance strategy and provides a brief overview of various common types of non-life reinsurance coverage currently available. It also describes the broad context in which reinsurance decisions are made, highlights the importance of aligning reinsurance decisions with risk appetite and describes an economic perspective for optimising the reinsurance strategy.