André Pienaar, Director and Principal underwriter at F&I Re (Pty) Limited spoke about Assets/Property exposure assessment and Maximum Probable Loss (MPL) – calculating MPL, factors affecting MPL, survey reports and more.
Insurers make use of MPL’s to ensure that they are applying the correct amount of capacity on any risk, so as not to over-expose themselves or their treaty partners. MPL’s assist insurers to more accurately assess possible “de-risking” opportunities like facultative reinsurance. Reinsurers impose minimum MPL factors onto treaties to minimize the impact of any single loss to the treaty.
