In our experience, few cedants take the time to value the gains generated by a reinsurance treaty in a scientific way.
Operational pressures on cedants often prevent them from having the time needed to develop a scientific approach to assessing reinsurance gains.
We have also found that cedants who develop these approaches are much better equipped to negotiate with their reinsurers and brokers.
Beyond the actual control of risk, developing a model and communicating it during negotiations will encourage the broker and reinsurer to do the same. At this stage of the negotiations, we have sometimes found that the initial price was twice the right price, or quite simply, that the treaty did not generate sufficient capital savings compared to the rate proposed by the reinsurer.
We therefore develop approaches for you based on the Monte Carlo method and help you to exploit its results in negotiating.
Fixes Rate - Reinsurance Audit :
- k€ 30 BT by Line of Business for one LoB
- k€ 25 BT by Lob for 2 LoB
- k€ 18.5 BT by Lob for 3 Lob
We analyze the LoB's risks, define the reinsurance requirement, and provide guidance on the prices reinsurers should charge.
Reinsurance Audit and Negotiation - Fixed Rate + Adjustement :
- k€ 10 BT by LoB
+ Variable fees on non-proportional treaties :
- 7.5% of the reinsurance premium savings, if the terms have improved.
- 25% of the reinsurance premium savings, if the terms are matching.
+ Variable fees on proportional treaties :
25% of the improved commissions, if the reinsurer deduction has been reduced as a result of our negotiation.
Reinsurance Audit and Negotiation - 100% sliding Rate :
For non proportional reinsurance structure :
- 15% of the saved reduced premium if the terms have improved
- 50% of the reduced reinsurance premium if terms are matching the expired.
On proportional treaties :
- 50% of the improved commissions, if the reinsurer deduction has been reduced as a result of our negotiation.
