The Global Risks Alliance (GRA)
What readiness means in reinsurance and Catastrophe: the evidence, governance and documentation a programme needs before a competent institution can review it independently.
Cedent C-07 · Resilience and finance… · Cycle 1 of 4
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Reinsurance and Catastrophe · Programme boardProgramme board, in outline: domain structure with placeholder names and illustrative values, not a record.
Readiness in Reinsurance and Catastrophe is the state in which a programme's evidence, governance and documentation let a competent institution review it independently, against frameworks such as Insurance Core Principles, ComFrame and the Insurance Capital Standard and Solvency II natural catastrophe standard formula and internal model approval. A readiness file is released only at the owner's written direction, and GRA does not approve, rate, underwrite, lend or invest.
Fig.A programme from scoping to the owner's decision. Design, not a record.
Which places drive loss in a severe year, and how far it reaches into reinsurance. Illustrative design values.
A readiness file describes a programme's evidence, risks and governance so that an institution can carry out its own review. GRA does not approve, rate, underwrite, lend or invest, and it recommends no counterparty.
| Structure | How it responds | Main risk for the buyer |
|---|---|---|
| Excess of loss, per occurrence | Pays above a retention for each event, up to a limit | Multiple events in a year each eat the retention |
| Aggregate excess of loss | Pays when annual losses exceed a threshold | Definition of covered events and hours clauses |
| Quota share | Shares a fixed proportion of premiums and losses | Ceding commission and counterparty risk |
| Indemnity catastrophe bond | Pays on the sponsor's actual losses | Longer settlement; investors bear moral hazard |
| Parametric or industry-index catastrophe bond | Pays on an index or modelled loss | Basis risk between index and actual loss |
Solvency II, the Insurance Capital Standard and local regimes recognise reinsurance and insurance-linked securities as reducing capital need when risk is effectively transferred and counterparties are sound. Basis risk and collateral quality affect that recognition. Topic depth at reinsurance structures.
A file is released only at the programme owner's written direction, to a party the owner chooses, with no fee tied to any transaction.
Each term as this page uses it. Where a standard-setting body defines the term, the wording follows that body.
| Term | Definition |
|---|---|
| Readiness file | A document set describing a programme's evidence, risks, governance and data so that a competent institution can carry out its own independent review; it is not an approval, rating or offer of finance. |
| Due diligence | The independent investigation a lender or investor carries out before committing finance. |
| Environmental and social safeguards | Requirements lenders set so financed projects avoid, minimise and offset harm to people and the environment. |
| Catastrophe model | Software that combines hazard, exposure and vulnerability modules to simulate many possible events and estimate the distribution of insured loss. |
The bodies and documents this page is read against. Status and editions change; each link goes to the issuing body.
The current service level is R0: information and enquiries. An enquiry receives a reference and names the next step; applications, payments, compute allocations and registrations open only when their team, terms and review capacity exist.