The Data Management Initiative team has published three new notification guidelines.
Trending over the last decade reflects an increase in ‘changes to’ and ‘changes of’ business partners to existing reinsurance and retrocession agreements. The types of changes are somewhat varied but do include an element of similarity in that the type of change, revision to company specific information, and updated banking or check disbursement information is needed by the reinsurer or retrocessionaire. The same information is also needed by the cedent when changes occur to the reinsurer or retrocessionaire. Please refer to the Acquistition_Name Change_Disbursement Notification best practices guideline document for details.
From time to time changes to the data previously reported to the reinsurer or retrocessionaire occur. Some changes can be related to an internal review that identifies a gap in reinsuring specific business while others can be associated with late reporting of business by the cedent to the reinsurer which then can create late reported business by the reinsurer to their retrocessionaire. There are some data changes that are a result of a correction by the ceding company to their billing system. And lastly there are changes to the billing method identifying which company is responsible for calculation of premiums and reserves plus the physical reporting needs. Each of these types of changes should be communicated to the reinsurer/retrocessionaire and the EO Data Clean Up Bill Mode Chg Notifications Guidelines document provides recommended approaches, communication needs, and notification timeframes.
As cedents reassess their current retention limit structures or reinsurance/retrocession needs they may also elect to recapture reinsured/retroceded business. For a description of the recapture types and notification needs, please refer to the RAPA Notifications Recaptures best practices guidelines document.
Please visit the Initiatives page for further information on current projects and additional data management guidelines!