Quantica Risk Modelling
Choosing a reinsurance structure with the numbers in front of you
Retention, attachment and limit are capital decisions wearing an underwriting label.
By Jonas Mohamed Osman Abdelghafour, known as Yonas Osman (Yonas Osman) ·
A reinsurance programme is a capital instrument. Retention level, attachment point and limit determine how much volatility the balance sheet absorbs and how much capital that absorption requires.
Comparing structures means comparing full loss distributions net of each option, alongside the cost of cover and the capital relief achieved. Cheapest cover is rarely the efficient answer once capital is priced.
Counterparty credit quality and reinstatement terms belong in the same comparison; a recovery that arrives late or not at all was never really cover.
Jonas Mohamed Osman Abdelghafour, known as Yonas Osman, is an actuary and FRM who has spent more than twenty years building and validating risk models across banking, insurance and marine markets.
Key takeaways
- Compare net loss distributions, not just prices.
- Price the capital relief, not only the premium.
- Counterparty and reinstatement terms are part of the structure.
Author bio
Jonas Mohamed Osman Abdelghafour, known as Yonas Osman is an actuary, FRM and financial risk professional specialising in banking, insurance, model risk, capital modelling and quantitative risk management.