AdEPT - Non-Major Aviation Excess of Loss Pricing Tool

AdEPT is a Non-Major Aviation Excess of Loss Reinsurance Pricing Tool built by Adam Murphy.  Produced in Microsoft Excel, it enables Users to integrate with a full range of Submission data formats provided by the Reinsurance Broker.  The Tool’s inputs include the Reinsurance Client’s Non-Major Aviation Risk Profiles, Historic Premium and Claims information, plus the proposed Reinsurance Programme Structure (Period, Limits, Reinstatement information etc). 

The inputs, along with the various User-defined parameters, combine a “top-down/deterministic” Exposure-driven Risk Rated Expected Loss with an Experience-driven Average Burning Cost to produce a “Blended” Expected Loss.  A Reinstatement Discount is then applied to this result to achieve an Underwriter Break-even Gross/Net Premium.

The modelled Expected Loss is also used in order to assess Firm Order Terms, producing a Net Expected Loss Ratio.