We offer, free of charge, a basic Treaty review service to our potential clients and partners, in a view of providing them with an independent opinion of their current treaty structure. This is usually done with the objective of helping them discuss the treaty terms with the respective leaders or used during discussions with their existing treaty broker. We cover the following aspects in the basic treaty review:
- Basic financial review based on last audited financial statements;
- Risk-taking ability to determine the optimal retention and optimise the return on capital employed;
- Review of the company strategic plan and objectives to align treaty for achieving those objectives;
- Comments of key factors like retention, capacity, balance, and commissions of proportional treaties;
- Comments on structure and priority levels of non-proportional treaties;
- Comments on costs of non-proportional treaties;
- Comments of general treaty terms and exclusions and other factors affecting the day to day use of the treaties.
Based on a more in-depth analysis and the treaty review mentioned above, we propose various treaty structures, made of either proportional or non-proportional treaties or a combination of both. We make sure that we align the treaty structure in a way that supports the strategic objectives of our clients. We can also support in the production of statistics in a manner which is acceptable by reinsurers. Based on the above we recommend the following:
- Optimal retention levels;
- Optimal treaty capacity and structures;
- Achievable commission levels and commissioning terms;
- Optimal priority level for non-proportional treaties;
- Optimal Risk, Clash, CAT and PML Error coverage for non-proportional treaties;
- Achievable costs of non-proportional treaties;
- Review of general terms, conditions and exclusions of the treaties to be fair to all parties and allow the optimal use of the treaty.
Based on the structuring and recommendation to our clients, once a consensus reached on the treaty programme, we approach a number of potential leaders (approved by client) and negotiate terms to be as close as possible to our initial estimates. Once approved and agreed by the client and the lead reinsurer, we proceed to place the treaties with securities which would have been discussed with the client prior to finalisation of contractual documentations.
Dynamic Reinsurance Analysis
Dependant on the size of the book of business and the complexity of the financial and capital structure and requirements of the client, we can offer a full Dynamic Reinsurance Analysis to be conducted by a firm of independent actuarial analysts. This entails a much more in-depth analysis of the portfolios of specific classes of business, claims history and projections and retention levels determined in a more scientific and mathematically accurate manner. We will incur the costs of the Dynamic Reinsurance Analysis subject to Reinsurance Solutions being exclusively appointed for the whole treaty programme for a period ranging between 3 to 7 years.