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Move the sliders to explore how treaty structure, frequency, severity, cost of capital, AAL, and AAD affect the technical premium.
All scenarios are pre-computed — results update instantly. Click any metric card for a detailed explanation.
Risk Measures
Key statistics computed from 20,000 simulated accident years. Click any card for a detailed explanation.
Technical Pricing
Premium breakdown using a cost-of-capital approach consistent with Solvency II. Click any card for a detailed explanation.
Ceded Loss Distribution
Approximate distribution of annual ceded losses across 20,000 simulated years, excluding years where the layer was not triggered. Vertical lines mark key risk thresholds — the further right they sit, the heavier the tail.
Sensitivity Analysis
Each chart varies one parameter while holding all others fixed at the current sidebar values. The gap between the red and blue lines is the total loading — the premium the reinsurer charges above the pure expected loss.
Premium vs Retention
Higher retention → fewer losses pierce the layer → lower ECL and premium. The relationship is non-linear — small retention increases have a large effect at low retentions.
Premium vs Severity Tail σ
Higher σ produces a heavier-tailed lognormal. Premium rises faster than ECL because TVaR grows disproportionately, inflating the capital load.
Premium vs Claim Frequency λ
More claims per year means more chances for losses to pierce the retention. Both ECL and premium grow roughly linearly with λ for high-excess layers.
Premium vs Cost of Capital
Higher cost of capital increases the capital load linearly. ECL stays flat — it is determined by the simulation, not the pricing parameters.