Large Professional Liability Writer

ISSUE

Company has grown through acquisition, inheriting varying legacy claims and reinsurance settlement practices. Expense allocations, XPL calculations, inclusion/exclusion of deductibles vary by originating carrier. Maintaining separate systems was too cumbersome.

SOLUTION

ReAcct established original issuance company terms that dictated how expenses were proportioned, how XPL and ECO claims were calculated and what data types were included in the calculations. By allowing the company to consolidate data onto a single platform that can handle books of business individually, the company was able to greatly improve efficiency and the timeliness of consolidated reporting.

Closely-Staffed Casualty Writer

Issue

Numerous, non-automated books of business needed to be automated but staff constraints made it impossible to automate them all at the same time, causing previous automation implementations to fail.

Solution

ReAcct developed a methodology and system tools that allowed business units to be prioritized and implemented asynchronously. As units came on-line, staff resources were freed up to automate additional books. Additionally, ReAcct supported the limited automation of books of business with limited activity so that their results could be consolidated into corporate and statutory results.

Commercial Liability Insurer

Issue

Reinsurance assumed between 1970 and 1985, in combination with primary and excess liability policies issued for the same insureds, threatened the company's viability. The company needed to evaluate and manage its exposure to large asbestos and pollution losses, including claims with several thousand claimants. Additionally, for losses which were adjudged to have occurred over several years, the company needed to apportion its losses over these periods and calculate reinsurance recoverables accordingly, including allocation to reinsurance participants based upon the number of days of participation relative to the exposure term.

Solution

ReAcct developed specialized tools to identify and aggregate losses based upon the original insured and produced specialized reports to support litigation efforts. In addition, a subsystem was developed to track super-numerous claimants and associated claim adjustment expenses by exposure, lawsuit, jurisdiction and status. Finally, specialized reinsurance calculations were developed to apportion reinsurance recoverable over multiple treaties and treaty years, down to the participant level.

Larger Program Writer

Issue

Several hundred programs processed manually using Excel-based spreadsheetes. The greatest challenge for this company was to automate literally tens of thousands of reinsurance treaties, facultative certificates, participants and historical premium and loss transactions, emanating from over one hundred producing agents and TPA's, stored in tens of thousands of Excel-based spreadsheets.

Solution

ReAcct leveraged the Excel-based data held by the client by developing specialized tools that supported the editing and upload of reinsurance contract, participant, transaction, balance, collateral, reinsurer, broker and other data types into the system directly from Excel-based spreadsheets. Doing so reduced the implementation time enormously and permitted the data to be edited prior to upload. As a result, over 1,100 program years of data have been automated and moved to production status, utilizing existing staff.

On-Shore Policy Issuance Company

Issue

Multiple and widely-varying captive programs with unique reinsurance terms, including program-specific captive proportional and third-party occurrence excess reinsurance and shared, cross-program aggregate stop-loss. Creative captive reinsurance terms including floating limits and attachment points tied to premium volume, numerous profit/sliding scale commission, loss corridor adjustable terms at both the reinsurance and producing agent level.

Solution

ReAcct created program level data structures that support the definition of both reinsurance and producing agent terms at the program level. ReAcct's original design supports the attachment, and definition of terms, of treaties at the program level so that a single treaty could be part of the reinsurance for one (or three, or twelve, etc.) or all programs. Special programming was done to support the more unusual contract features, and the end result was a fully-automated reinsurance process.

Insurer with Large Property Book

Issue

Variable reinsurance needed to be applied at the location and structure level. The underwriters would need to wait until month end for the direct data to be processed prior to entering reinsurance information that was the basis for the manual calculation and entry of ceded reinsurance at the property location and building structure level. For some large insureds, a single policy could cover multiple apartment complexes (locations) in various states, each with many individually valued and reinsured apartment units (structures). As a result of the complexity of the reinsurance and the delay to month end, some information was lost or never entered and this resulted in missed or inaccurate reinsurance billings.

Solution

ReAcct created a module that permitted the underwriters to extract data from the policy issuance system into the ReAcct Reinsurance System in real-time, thereby eliminating the loss of data and significantly improving the workflow. Additionally, reports were generated by underwriter prior to each month end to identify any policy with missing or incomplete reinsurance information. ReAcct also fully automated the reinsurance calculation process, eliminating an entire claims department function and significantly improving the accuracy and timeliness of reinsurance billing and collection. The automation required modifications to allow reinsurance to be defined at a sub-policy (location/structure) level while maintaining the risk state/loss state integrity of the data.