Ask the Expert: Reinsurance FAQs for 2022

Q. When and how often should I be evaluating my program’s performance?

A. Set it and forget it is not the approach here. Partnering with the right provider that is actively managing and consulting with you on a regular basis is important. Stay on top of things right from the start and evaluate at least quarterly. There are a lot of factors to evaluate, but pay particular attention to early claims experience, terms and deductibles of contracts written, specific product performance, comparisons against benchmark (either geographic or brand specific), etc. To achieve maximum profit, you need to have the opportunity to pivot if you aren’t seeing the results that you expect. There are so many moving parts to a profitable program. While a quarterly statement review is a great place to start, an annual reinsurance assessment that takes a deep dive into the details is paramount. Ask your provider to identify potential problem areas as well as areas of opportunity so that you can create an action plan to get you where you want to be.