Mission Statement

Our mission is to ensure that the highest quality of data is delivered through the coordination of our efforts for the purpose of lowering the risk of systemic issues.

What does Data Quality mean to each player? Each player in the reinsurance stream has different needs for quality data.

1. For the Ceding Company, data used by the reinsurance system is only as good as the administration system supplying the data. A “Garbage-in = Garbage-out” philosophy. Unless checks are made back to the administration systems, the data within the reinsurance system can be suspect. Assumptions are made that the source data is coming into the reinsurance system correctly. Constant monitoring of the administration systems is required to ensure all changes are accurately being transferred to the reinsurance system. Internal reporting is also impacted by the quality of the reinsurance data.
2. For the Reinsurer, data quality is multi-dimensional. One dimension is accuracy. This is not just limited to formatting accuracy but also field accuracy and is the most difficult to measure. A second dimension is completeness and is defined as having the data meet all the minimum data requirements. A third dimension is consistency with data being consistent from period to period. The fourth dimension is recency and measures the freshness of the data.
3. For the Retrocessionaire, high quality data is complete, accurate, available and timely. Complete data means no information is missing from the data file, meaning less time is taken to query for missing information. Accurate data is when all information provided is correct, with less time to review information for errors. Available data means that the information is provided and there is no need for a request. Timely data implies no significant lag between the effective date of the data and when it’s provided. High quality data enables the company to make sound business decisions.

Best Practices: related to how to carry out a task or configure something – proven to produce positive results

1. Data Quality
   This guide was created as a best practice for initial review of the quality of the data sent between the business partners. This document steps through specific data quality issues as seen by the various business partners in a reinsurance arrangement (Ceding Company, Reinsurer, Retrocessionaire).
      Data Quality Guide Document
2. Data Clean Up Notifications
      Data Clean Up Notifications Document
3. Acquisition Notifications
      Acquisition Notifications Document
4. Company Legal Name Changes
      Name Change Notifications Document
5. Error and Omissions Guidelines
      Error and Omissions Guidelines Document
6. Notification of Recaptures
      Notifications of Recaptures Document
7. Joint Life Claim Reporting
   Since Joint Life policies cover 2 individuals in most cases the date of deaths differ. If the type of joint policy is last survivor, second to die or similar then the policy is still inforce after the first death covering the survivor. It is important to report these policies properly to know they are still inforce and to know which life is inforce and the one that is inactive due to death. This becomes even more important for reinsurance cessions of Joint Last to Die plans where one life is uninsurable as the benefit is paid at the time of the ‘healthy’ insured’s death irrespective of whether it was the first or second death.
      Joint Claim Reporting Document
      Reporting Both Lives at Time of First Death – Scenarios Spreadsheet
8. Flat Extra Reporting
   Flat extra reporting fields are key fields to identify an added risk associated to a particular policy. Depending on the client’s reporting system, the flat extra fields are sometimes fully provided and other times only partially provided. The way those fields are reported on the data files are not necessarily consistent or complete. It is important that the submitting company reports the data in those fields properly to ensure the flat extra premium paid is correct and as per the expected premium rate.
      Flat Extra Reporting Document
9. Zero at Risk Amounts
   At Risk Amounts are used by ceding companies to determine the total ‘per life’ retained amount, it is a key reporting field used by insurers, reinsurers and retrocessionaires to identify their overall liability should a claim arise. While this sounds straightforward, there are valid situations where a current At Risk Amount may be zero but future At Risk Amounts for the same policy may be a larger value. Additionally there may be situations where, over the course of the policy life, the future At Risk Amounts may increase and then later decrease to zero. Without a good understanding of the reason for a zero At Risk Amount during a policy’s lifetime, there is the potential for the insurer, reinsurer or retrocessionaire to be over retained on a life because they did not secure outside outlets for the over retained amount.
      Zero At Risk Amounts Reporting Document
      Zero At Risk Amounts – Scenarios Spreadsheet
10. Inforce & Transaction Files Not Reconciling
    The accuracy of data reporting is very important to the submitting company as well as the receiving company. Some of the reports that are typically used to administer the inforce business include the inforce file, transaction file and policy exhibits. The reconciliation of these source data files received each month or quarter is an important step to ensure completeness and accuracy of the block of business being administered. Even with the availability of robust systems to manage policy data, inconsistencies between these various source files continue to be present. Depending on the size of the business administered and time constraints, reconciliation can be performed at either a detailed or less detailed level.
       Inforce & Transaction Files Not Reconciling Document
11. Face Increases and Decreases
    Face increases and decreases are an everyday aspect of reinsurance administration. However they are an aspect that has some complexity to it and requires thoughtful consideration as to how they will be administered by the direct writer/ceding company.
       Face Increases and Decreases Document
12. Underwriting Methodologies
    There are several underwriting methodologies that are used by direct writing companies. The use of one methodology over another can be determined by a number of factors including product design, policy face amount, applicant health status and age.
       Underwriting Methodologies Document

Reporting Guidelines: Recommendations that help direct a course of action but can vary by Ceding Company and Reinsurer

1. Partnership Start Guide White Paper
   The partnership start guide was developed to ensure collaboration between ceding companies and reinsurers when onboarding new clients.
      RAPA Data Quality Partnership Start Guide White Paper PDF
2. Late Reported Transactions
   Late reported transactions impact users of the data. These delayed transactions may be due to company mergers or acquisitions, changes in administrative systems, or poor cedent controls that result in errors and omissions reporting. Late reported transactions may have impacts on sales, financials, company credibility, reserves and capacity.
      Late Reported Transactions Document
      Late Reported Transactions Spreadsheet
3. Missing Fields
   Completeness of data reporting is very important to the submitting company as well as the receiving company. If key fields are missing when the data is reported to the Reinsurer/Retrocessionaire, the data may be misinterpreted. This can lead to more time in answering questions or incorrect assumptions, potentially resulting in financial impacts to the bottom line. Complete data reporting is one method to ensure the business is processed efficiently and correctly.
      Missing Fields Document
      Missing Data Fields – Scenarios Document
      Missing Fields Impact Grid Spreadsheet
4. Conversions
   This guide has been created as a reference to assist with the handling of conversions. Policy conversions occur within the life insurance industry with regularity and can follow different processes as needed to support various consumer needs. Additionally, each reinsurance agreement typically contains the negotiated terms for covering the converted policies. Therefore it is important that the conversion activity be reported to the Reinsurer(s) and Retrocessionaire(s) in a manner to ensure the contractual terms are honored.
      Conversions Document
      Conversion Guidelines Matrix Spreadsheet
5. Partial Reporting
   The accuracy of data reporting is very important to the submitting company as well as the receiving company. Some companies have multiple systems that compile reporting or use third party administrators for reporting. It is important the submitting company confirms all reporting is created when expected and sent to other parties. A system error may also occur that would result in partial reporting. It is important the submitting company confirms files are correct or develop a process to confirm this.
      Partial Reporting Document
6. Policy Number Changes
   Policy numbers are typically a static data element, it is a key reporting field used to identify and apply policy changes to correctly represent the risk and the treaty terms under which the policy is covered. An unreported change in the policy number potentially leads to overstatement of reserves and assumed NAR as it may appear to be two separate policies in the systems. Conversely, policy number changes which are communicated in advance of the reporting, or reported as a change, provide an opportunity for the business partners to make modifications to accommodate the change and avoid any appeared duplication or financial overstatements.
      Policy Number Changes Document

Communication Tools

1. Communicating Changes to System, Data or Administration
   These guides were created as references for initial communication of seriatim data and summary reporting to your business partners. Examples of applicable uses of this form include, but are not limited to, reporting of inforce, transactional, policy exhibit, premium, reserve, and claims data in recommended file layouts. Key elements are fields such as treaty codes, plan codes, residence codes, claims reasons and underwriting preferred classifications.
      Communicating New System, Data, or Administration to Business Partners Document
2. Product Information Request
   This document is a template that is encouraged to be used by Reinsurers when requesting plan and product information from Ceding Companies. The expectation is that this makes providing this information easier for Ceding Companies because the Reinsurers are all asking for the same information in the same format. Ceding Companies are welcome to proactively use this document to report new plan code information to their Reinsurers.
      Plan Information Template for Reinsurers Spreadsheet
3. Disbursement and Payment Change Notifications
      Disbursement and Payment Information Change Notifications Document

If you are a non-member, please access these documents through the following link: https://reinsadmin.org/communicating/

These documents are completed samples of the Reinsurance Reporting Guidelines and Best Practices document. Please feel free to use these as references on some key topics.