Gross vs Net Retained (cap) by return period — illustrative curve shape.
PML Bars (Tail Focus)
1-in-100 and 1-in-250 — gross vs net retained.
Program Economics (Illustrative)
Reinsurance cost
$1,162,500
Expected losses (AAL)
$900,000
Operating expenses
$750,000
Net premium (post-reins)
$2,587,500
Underwriting result (net)
$937,500
Net = GWP − reins cost − expected losses − expenses. Replace with actuarial pricing + vendor CAT.
Tokenized Participation (Economic Interest Only)
Optional homeowner buy-in token; represents economic participation in a defined surplus pool (not policy rights).
Token buy-in per home
Target cash yield
(7.0%)
Surplus share to tokenholders
(40.0%)
Total token buy-in
$2,500,000
Token surplus pool
$285,000
Achievable cash yield
7.0%
Annual cash distribution
$175,000
Annual premium credit pool
$110,000
Per-home cash / credit
$3,500 / $2,200
Compliance note: Offer tokens under appropriate exemptions (e.g., Reg D/Reg S), transfer restrictions, disclosures; tokens do not provide claims rights, policy control, or reinsurance proceeds.
Rating-Agency Style Review Lens (Illustrative)
Net cat leverage: Maintain stable net retention vs surplus; demonstrate tail resilience post-event.