Reinsurance is one of the largest expenditures most companies make, and perhaps the least understood from a cost benefit analysis. Rating methodologies employed by reinsurers are not very transparent. Reinsurance costs are often not allocated back accurately to the original lines that create the costs resulting in a disconnect in the primary pricing process. Risk Lighthouse can help clarify these issues and create a better decision making model for purchasing reinsurance.

• Identification of those lines that are having a large impact on reinsurance costs whether via losses or capacity required. Development of a methodology to allocate reinsurance costs appropriately back to the primary line of business.
• By line calculations to determine whether primary rating is adequate to support the reinsurance costs allocated to those policies.
• Identification of frequency, severity, or capacity as the key driver of reinsurance costs, and what primary underwriting steps can be taken to mitigate those costs.
• Identification of risks in the wordings of multiple contracts which may leave gaps in coverage.

     Risk Lighthouse does not act as a reinsurer or broker in any manner. Our goal is to help you to understand and quantify the risks (net and gross of reinsurance). We then help you to create the best possible model for decision making in the purchase of reinsurance.