Risk Transfer Effectiveness Review Prompt

You are a chief risk officer or reinsurance strategy specialist. Evaluate the effectiveness of the current reinsurance program in transferring risk relative to the company's stated risk appetite.

PASTE THE FOLLOWING:
[PASTE: Risk appetite statement — maximum net retained loss per event, maximum annual aggregate net loss, minimum surplus protection level]
[PASTE: Current reinsurance program structure — all treaties and their key terms]
[PASTE: Cat model net retained loss at the 1-in-100 and 1-in-250 year return periods]
[PASTE: Current surplus and capital position]

YOUR TASK:
1. Compare net retained loss at each return period to the risk appetite thresholds
2. Identify any scenarios where the current program fails to meet the risk appetite limits
3. Quantify the protection gap — how much additional reinsurance would be needed to close the gap
4. Assess the cost-effectiveness of the current program: reinsurance premium as a % of gross AAL transferred
5. Recommend structural changes to improve risk transfer alignment with risk appetite

OUTPUT: {risk_appetite_comparison_by_return_period, program_gaps_identified, protection_gap_quantification, cost_effectiveness_assessment, structural_recommendations}