What factors are considered by insurance companies when choosing a reinsurance program?
Generally speaking, the following factors are considered
important among insurers when considering potential reinsurance
partners; (i) the financial security/solvency of the reinsurer,
(ii) the third-party rating of the reinsurer, (iii) the reinsurer's
reputation and history of willingness to pay claims in a complete
and timely fashion, (iv) the reinsurer's reputation and history of
willingness to resolve disputes in a fair, timely and
cost-efficient manner, (v) the price (as measured in Rate-On-Line)
of the reinsurance product, (vi) the breadth and potential cost of
items excluded from coverage, (vii) the reinsurer's willingness to
develop bespoke solutions for its client's risk management
This is not meant to be an exhaustive list, and other factors
may be considered as well.