logo new

 Uses of CAT Models

The main users of catastrophic models are Insurance Companies, Reinsurance Companies and Reinsurance brokers involved in property insurance. The modeling enables the users to quantify risks and inform underwriting decisions daily.

  • Insurers and risk managers use cat modeling to assess the risk in a portfolio of exposures. This helps in guiding an insurer's underwriting strategy or help them decide how much reinsurance to purchase.
  • Some state departments of insurance allow insurers to use cat modeling in their rate filings to help determine how much premium their policyholders are charged in catastrophe-prone areas.
  • Insurance rating agencies such as  and Standard & Poor's use cat modeling to assess the financial strength of insurers that take on catastrophe risk.
  • Reinsurers and reinsurance brokers use cat modeling in the pricing and structuring of reinsurance treaties.
  • Insurers and Reinsurers use cat models to derive the required capital under the Solvency II regime.
  • Cat models are used to derive catastrophe loss probability distributions which are components of many Solvency II internal capital models.
  • Catastrophe bond investors, investment banks, and bond rating agencies use cat modeling in the pricing and structuring of catastrophe bond.

Kenneth Obong’o Oballa

Training Manager,

Zep-Re (PTA Reinsurance Company)

Office Contacts

  1. Head Office
  2. Regional Hub
  3. Country Office
  4. Regional Hub
  5. Retakaful Window
  6. Uganda Office
  7. Ethiopia Office

NAIROBI, KENYA
8th Floor, ZEP-RE Place,
Longonot Road, Upper Hill,
P.O Box 42769-00100,
Nairobi, Kenya
Telephone: +254-020 4973000/2738221

ABIDJAN, CÔTE D’IVOIRE
Cocody Canebiere, Cocody,
08 BP 3791 Abidjan 08,
Côte d’Ivoire,
Téléphone : +225 22 40 27 85 / +225 55 61 71 01

LUSAKA, ZAMBIA
No. 54, Plot No. 356184,
Base Park (Diamond Park), Alick Nkhata Rd
P. O. Box 36966
Lusaka, Zambia
Telephone: +260 211 252586

HARARE, ZIMBABWE
16th Floor -North Wing, Joina City
Cnr Jason Moyo and Inez Terrace
Harare, Zimbabwe
Telephone: +263 4 777 929/932

KHARTOUM, SUDAN
Reinsurance House Building
P. O. Box 3224
Khartoum, Sudan
Telephone: +249 183 799357/8/9

Kampala, Uganda
Lourdel Towers, 5th Floor
Nakasero Kampala

Addis Ababa, Ethiopia
UNDP Regional Services Centre, Ground Floor
Bole Olympia Roundabout behind Deluxe Furniture,
Addis Ababa, Ethiopia

Newsletter Subscriber