# Claims and Risk Management

### Claims Procedure <a href="#pdf-page-mmjoz4sca7chavqvm8iq-risk-appetite" id="pdf-page-mmjoz4sca7chavqvm8iq-risk-appetite"></a>

OnRe manages claims with a clear, disciplined framework that reflects traditional reinsurance standards while using onchain infrastructure to improve transparency and settlement certainty. The goal is to ensure every claim is handled fairly, efficiently, and in line with the agreed contract terms.

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#### Notification

A claim begins when the cedent or broker provides an official loss notice. The claim is logged in the system, assigned a reference, and initial details are recorded for tracking and reserve purposes.
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#### Assessment

The claim is reviewed against the contract to confirm coverage and liability. Additional documents may be requested to clarify the event or quantify the loss. An initial reserve is set when the loss amount is not yet known.
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#### Settlement

After validation, settlement is confirmed with the broker in line with contract terms. Once conditions are met, payment is issued to the cedent’s appointed recipient. The claim is closed once records are updated and confirmation is received.
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#### Communication

Brokers provide periodic updates throughout the claim lifecycle. Relevant stakeholders receive reporting on claim status, reserves, and any settlement activity.
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#### Documentation

Required materials may include loss reports, expert assessments, and settlement records. These support accurate processing and future audits.
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#### Quality Control

Periodic independent reviews and audit procedures help ensure accuracy, compliance, and consistency across all claims.
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#### Dispute Resolution

Any disagreements follow the dispute resolution procedures set out in the contract, which may include mediation or arbitration.
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### Risk Appetite

Our risk appetite is guided by a disciplined approach to onchain reinsurance. We balance risk and return through conservative investment strategies and targeted underwriting, focused on these key principles:

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#### Capital Protection

Protecting capital through a conservative mix of high-quality, short-duration assets, reinforced by stablecoin reserves, T-bill yield, and token rewards that meaningfully reduce downside risk.
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#### Liquidity

Maintaining strong liquidity to meet regulatory requirements and support investor flexibility, with ONyc tokens available 24/7 on secondary markets.
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#### Risk Management

Reducing loss probability to \~0.5% through structured underwriting and active portfolio management, utilising stablecoins to strengthen capital resilience.
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#### Regulatory Alignment

Adhering to stringent compliance standards, including the BMA’s BSCR requirements, to ensure long-term stability.
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#### Dynamic Strategy

Regularly reviewing and adjusting investment objectives to account for changing market conditions and the unique risk profiles of each account.
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