Updated review by WB - March 2026 - Risk Pool Structuring Tool Review

[stufraser1]

Risk Pool Structuring Tool Review

• New - Country Loss Analysis tab – wrong RP
• An example Mexico Cyclone:
  • User input of:
  • L1 - AP:100mn, EP:200mn (layer of 100mn)
  • L2 - AP:200mn, EP:500m (layer of 300mn)
  • In Financial Structure Input tab, calculating the equivalent RP from the OEP losses in RP calcs tab (1.98 RP = around 100m).
  • In Country Loss Analysis tab, losses are pulling from AEP.
  • As layers have aggregate limits, the Financial Structure Input tab should be pulling from the AEP losses to find corresponding RPs for AP & EP.
• Update RP calculation in Financial Structure Input tab

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• New - Financial Structure Visual tab – mismatch in RP losses
• Mismatch between exact RP losses - Mexico Cyclone example: From EP curve on Country Loss Analysis tab and and those in Financial Structure Visual

Return Period	Equivalent Percentile	Country Loss
2	50.000%	117,016,626
5	80.000%	2,336,127,855
10	90.000%	5,151,940,410
20	95.000%	9,010,548,603
25	96.000%	10,254,527,331
50	98.000%	14,617,478,928
100	99.000%	19,353,209,542
200	99.500%	25,764,367,264

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• New - Financial Structure Visual tab – issue with graph formatting
• When max RP set to 50 layer 2 no longer shows why is this?

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• Wording on overview page
• Wording change: ‘The Disaster Risk Pooling Tool is an educational resource developed by the Insurance Development Forum in partnership with Maximum Information and the World Bank Disaster Risk Finance team under the Financial Services global department”.

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Pool Analysis tab: reinsurance limit not reaching exhaustion limit -- Review suggestion to edit and update
It looks inconsistent that the pool loss reaches the pool exhaustion (grey line reaches yellow dotted line) but the reinsurance limit doesn’t reach exhaustion. We would have thought the green line stacked on top on grey line, to show the losses between yellow and blue dotted line. The current presentation is misleading as for the most severe losses it appears as if there is more reinsurance to use when in fact this is not the case.

• Is there a way we can adjust the chart to more intuitive for stacking of layers?
• Why does Pool loss (agg limit 400m) stop at 300m and then later caps at 400m? (it looks like this is just due to losses and coincident, another example doesn’t do this but please check)
• Why does risk transfer eligible loss not a flat line at 500m along with RI limit? These losses should be capped at total pool+ RI limit. If not possible just change name to ‘Eligible losses’.
• Should the RI loss line not be stacked so starting at 400 up to 500 (100m coverage) and hit RI dashed line? If this is not easy to do, I suggest removing yellow and blue dotted line as done for the Country Loss graph.

Can see this issue was assigned to be resolved in github but I don’t see changes.