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Data Management Initiative

Best Practices

 

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.
       Accelerated Underwriting Best Practices and Audit Framework Document