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23
ADVANCED REINSURANCE

Commutation Agent

Evaluate commutation opportunities with net present value analysis. Models runoff vs. commutation scenarios with sensitivity testing.

Production Ready
Reinsurance

The Problem

Determining whether to commute an in-force treaty or let it run off requires complex analysis of reserve uncertainty, discount rates, operational costs, and counterparty risk. Manual analysis takes weeks and often produces inconsistent results.

The Solution

AI-powered commutation analysis that models runoff vs. commutation scenarios, calculates net present value under various assumptions, performs sensitivity testing, and provides recommendations with confidence intervals. Accelerates commutation decisions from weeks to days.

Key Benefits

Model 50+ commutation scenarios in hours

NPV analysis with confidence intervals

Sensitivity testing on key assumptions

Operational savings from book reduction

Optimal commutation pricing negotiation

Return on Investment

Time Savings
85% reduction in commutation analysis time
Cost Reduction
5-10% improvement in commutation outcomes

Technical Specifications

Input Formats

  • Treaty terms
  • Reserve data
  • Payment patterns
  • Discount rates

Output Formats

  • Commutation analysis reports
  • NPV calculations
  • Sensitivity analysis
  • Negotiation guides

Integrations

  • Reserve systems
  • Financial planning
  • Treaty systems
  • Actuarial platforms

Common Use Cases

01

Annual commutation opportunity assessment

02

Treaty-specific commutation analysis

03

Portfolio cleanup and capital release

04

Counterparty risk reduction via commutation