Catástrofe en la Costa

The new director of claims and catastrophes of a Mexican property insurer in Merida, with 204,000 homes and 6,000 businesses insured in the Yucatan Peninsula, faces 42,000 claims the morning after a category 4 hurricane makes landfall on the Riviera Maya, with the loss already above the top of the reinsurance.

Over four decisions between September 2027 and March 2028 the participant chooses adjusting capacity, the order of attention and the first message to customers, regulator, reinsurers and press; the settlement method, the answer to ambiguous storm-surge claims and the dealings with regulator and press; the year-end reserve, the reinsurance recovery and how files with hidden damage are closed; and finally the 2028 coastal exposure, price and catastrophe reinsurance using the recalibrated catastrophe model.

The model is deterministic: claims settle at the chosen capacity and order, every month of waiting costs lodging, secondary damage, business interruption, late-payment interest and complaints, overpayment grows with speed and weak control, and the next season is valued on the model average annual loss, the 1-in-200-year loss, reinsurance cost and the solvency capital requirement.

The score combines the quality of each decision with the result of each period, and is capped when owed claims are refused by rule or when the 2028 plan leaves capital below the requirement. Spanish (primary, Mexican) and English.

An intermediate simulation for participants who already know the core concepts of the subject, designed for master's and MBA programmes.