Commercial Insurance

What factors are considered by insurance companies when choosing a reinsurance program?

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Wiki User
September 13, 2011 11:07AM

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.

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