Low-frequency and high-severity risks

Reinsurance protection against earthquakes and other natural disasters is arranged, in line with the high level of potential claims in the Republic of Slovenia. Thus far, Triglav has not encountered any earthquake of catastrophic proportions. The earthquake models available to the Company show that earthquakes with a return period of 1,000 years and an implied 20% margin of error in estimating the amount of potential claims do not represent a greater threat than the other natural disasters Triglav faces almost every year.

A potentially catastrophic loss occurrence could arise from the nuclear peril that Zavarovalnica Triglav has assumed from the Slovenian Nuclear Pool. Such a loss occurrence is characterised by an extremely low frequency, as no major loss event has been reported in 25 years, and the correlation between such a potential loss event and the arising liabilities is low or null. In the worst-case scenario, a net claim from a nuclear loss event would not exceed claims from a single natural disaster event.


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