CASE STUDY

Optimization of CAT Reinsurance Processes in a P&C Insurance Company

Objectives

Streamline the reinsurance program

Improve efficiency in monitoring balances still in collection process 

Simplify cash collections from diverse reinsurance programs

Implement a system to track cash coming in as an advance

Automate risk management calculations and reporting 

Results

Reinsurance recoveries calculation transitioned from manual Excel spreadsheet to an automated system

Enhanced efficiency in monitoring balances

Simplified cash collections from varied reinsurance programs post-CAT events 

Successful tracking of cash inflows before reimbursement of paid losses

Timely report generation for effective management of credit risk

They needed software that would prepare the cumbersome year end Schedule F report of reinsurance required by our state regulators. Duck Creek Reinsurance was the clear choice for us. They have a modern platform and a track record for agile, rapid implementation.

John M.
Chief Financial Officer
P&C Insurance Company


The Challenges

  • Manual calculations and reporting 
    All calculations were performed manually and reports couldn’t be produced on a timely basis, making it difficult to manage credit risk associated with reinsurance during catastrophic events.
  • Complex reinsurance structure
    The firm has a very complicated reinsurance structure, having various layers of excess of loss reinsurance, reinstatement premium protection, and quota share treaties with reinsurers in different geographical locations.

The Solutions

  • The company adopted Duck Creek Reinsurance software for its modern platform and agile, rapid implementation. 
  • This solution facilitated tracking of the various layers of the reinsurance program and calculation of the required premium due to each reinsurer.
  • The system also maintained a record of reinsurance billings and cash collected by reinsurer, with a proper classification of recoverable on paid loss or recoverable on advance billing.

The Impacts

Improved efficiency

The adoption of Duck Creek Reinsurance software eliminated manual calculations and improved the efficiency of the reinsurance process, including time saved for the year-end Schedule F report of reinsurance for state regulatory compliance.

Enhanced risk management

The timely generation of reports facilitated better management of the credit risk associated with reinsurance, even during CAT events.

Handling complex reinsurance structures

The Duck Creek Reinsurance software allowed for better management and understanding of the complex reinsurance structure.


About The Customer

The P&C insurance carrier insures homes and businesses for losses from hurricanes, tornadoes, other windstorms, and hail.

Location
N/A

Industry
Insurance

Products/ Services Utilized
Reinsurance

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