Reinsurance Case Study

 

	Customer: Global Insurance Broker Employees: 55,000 Location: 100 Countries Industry: Financial Services
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Global Reinsurance Broker Reduces Portfolio Risk. Establishes a central system for creating mission critical placement and client documents

 

Exari™ enables multiple international offices to produce consistent and compliant reinsurance contracts – faster and more accurately than their competitors.

 

The Facultative Reinsurance Division (FRD) was established to provide local reinsurance expertise in multiple locations. Insured risks of all kinds are re-insured, or placed, through a global network of brokers and underwriters. This form of reinsurance is, by its nature, extremely diverse and reactive to the needs of individual underwriters. Reinsurance is available to all direct classes of risk. It must respond to the same regulatory and compliance demands as its insurance counterparts.

 

With a team spread over multiple offices worldwide, FRD’s immense challenge is to ensure that each broker produces accurate documentation that meets corporate standards. Falling short equates to increased risk throughout FRD’s massive portfolio. Before Exari, brokers have traditionally created their own placement documents by cutting and pasting from expiring documents. This process allowed errors to creep in -- incorrect or out-dated clauses being used, the omission of critical contractual terms, and the lack of corporate standards.

 

Further, regulatory compliance was something the group could only aspire to. Analysis of the documents in use across the regions found:

• Substantial inconsistencies;

• Redundant clauses were actively in use; and

• The group’s clause library only existed on a secretary’s hard drive (if at all).

• Lack of transparency to the details of the risks re-insured.

Exari™ Success = Global Workflow + Smart Document Assembly

 

The combination of global workflow, documentation management and Exari Document Assembly provided a robust system which each broker could use to ensure that they are conforming to the regulatory needs of each local country and their own compliance group’s requirements.

 

Exari helped FRD establish rationalized, “smart” templates for the Property, Casualty and Marine classes of risk, re-using common conditions and variables and building in best practices throughout. A definitive clause library was established to hold both general market and broker-specific clauses. All variable fields within these clauses are now mandatory to complete, then stored in a document repository for future search, retrieval and audit. Strict controls, implemented and enforced through Exari, ensure that limits, premiums and premium payments are all handled consistently, while allowing flexibility for class-specific requirements.

 

As brokers create their placement documents, they are guided by help text, comments and group policies through Exari’s easy-to-use web based interview. Styling, logos, addresses and office-specific requirements are all catered for, allowing an office to maintain its own identity while quietly conforming to the Group Head Office mandates. Once the placement agreement is complete and approved, the subsequent client documentation is produced quickly and efficiently without any risky and costly re-keying.

 

FRD is now producing documents 75% faster than before. Risk reduction is dramatic, as managers know that proper clauses, processes and regulatory rules are in place, with consistency and greater centralized control. Inevitable changes to rules are incorporated quickly and published globally at a stroke.

 

Staff can now spend more time placing new business and earning extra brokerage. Compliance issues are detected early and handled in the background. Management has unprecedented new visibility across the entire portfolio, at both the summary level and for every document produced by each broker, in each office - worldwide.

 

 

Profile: Global leader in risk management, risk consulting, insurance broking, alternative risk financing, and insurance program management services.