Mike's comments about reinsurer financial health and loss reserve adequacy are important factors to monitor. What is their claim paying ability and reputation in the marketplace. In the insurance world you have the benefit of A.M. Best and Demotech doing detailed analysis and rating the carriers that subscribe to their service.
As an insurance carrier, our reinsurer and reinsurance broker relationships had vendor risk evaluations done the same as any other vendor.
Original Message:
Sent: 02-16-2021 03:48 PM
From: Mike Campbell
Subject: Insurance Industry: Reinsurer Oversight
I think of a reinsurance company similar to a fourth party. In evaluating the risks of reinsurance, I consider financial health and adequacy of loss reserves as higher risks to assess and monitor. These risks can be monitored through financial health assessments, AM Best ratings, and the state's department of insurance enforcement actions. In fact, the presence of reinsurance could be considered a risk mitigation because it is a means of spreading risk across multiple carriers. Would love to hear input from others on managing risk associated with insurance carriers.
Original Message:
Sent: 02-11-2021 10:37 AM
From: Anonymous Member
Subject: Insurance Industry: Reinsurer Oversight
This message was posted by a user wishing to remain anonymous
Thinking about Reinsurers in the Insurance Industry – does anyone have advice on how to structure an oversight framework for Reinsurers? Is this different than for a typical Third Party or is the oversight the same no matter the Third Party segment? This will help build a framework and influence a Policy for them.