Reinsurance Technical Audits

The effectiveness of any reinsurance programme is dependent on the accurate and proper implementation of the programme. Most often, insurers and reinsurers purchase the best possible reinsurance programme but still fail to see the benefits because of various reasons which include the following:
  • Wrong cessions done at policy level when processing transactions.
  • Claims recoveries not done correctly according the reinsurance cessions.
  • Failure to apportion insurance reserves according to the reinsurance structure.
  • Late notification to reinsurers leading to claim rejection.
  • Late recoveries of reinsurance claims leading to loss of revenue and liquidity strain.
  • Wrong transaction processing leads to production of wrong treaty statistics and ultimately, an expensive programme which is not costs effective

The net effect of these errors mostly culminates in higher retained losses for the insurer as well as an expensive reinsurance programme. An insurance company requires an independent review at least once every year to ascertain the accuracy of the data used to price the treaty programmes. Essentially, this should be done prior to production of treaty statistics.

We have the technical expertise to provide the technical audit which looks at the full spectrum of underwriting, claims and reinsurance transaction processing. This service is critical for companies operating with delegated authority such as Underwriting Managers

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