Services Inspection of Records

Reinsurance Underwriting Pre-Quote Audits

Writing profitable business requires:

• Constant vigilance starting with a strong understanding of the business being reviewed; and
• Confidence in the ability of the cedent and its employees to manage the business.

Chiltington offers a pre-quote audit service that is staffed by seasoned property and casualty reinsurance underwriters. Chiltington's experienced staff is there from the very beginning to help you assess and analyze the submission before you quote on it. By performing a pre-quote audit, Chiltington will review the cedent's files as part of the fact-gathering process and prepare a complete but concise report that will be part of the basis for accepting or rejecting a new submission or accepting an increased line on an existing treaty. Our pre-quote audit will serve as an underwriting tool to respond to the specific questions you have about this book of business so your decision to write or not write this business can be well-documented. Although each pre-quote audit would be tailored to the type of agreement at hand, the general scope of all pre-quote audits would encompass the following

• Senior Management Interviews would be conducted to determine the company’s underwriting philosophy; whether appropriate management controls are in place to verify adherence to the company’s underwriting guidelines, especially if underwriting is delegated to branch offices or MGAs; how the company’s business strategy, such as growth plans or changes in lines insured, may affect the business subject to the treaty.
• Staff Interviews of both the underwriting and claims staff would be conducted to determine their experience levels, expertise, workload, and authority levels. Of particular interest is whether the company offers training programs; keeps the staff abreast of any changes in the company’s underwriting or claim handling guidelines; conducts internal audits; and routinely supervises the activities of the underwriting and claims staff.
• File Reviews of underwriting files would be conducted to determine compliance with the company’s guidelines or representations made by the cedent. The review would focus on the method and consistency of pricing; the adequacy of the underwriting information in the file; the risk selection techniques; the use of facultative reinsurance; and the proper use of the treaty.

Chiltington’s team of experienced professionals with diverse skill sets will assist you in gathering facts and assembling data necessary for the decision making process and will do the audit on a timely basis. Our seasoned professionals have practiced the business of underwriting and understand the requirements for deadlines and the practical use of tools. Our report will address any concerns expressed when the audit was undertaken as well as provide the practical value of ascertaining the profit potential of the treaty offer, the quality of the portfolio, and the strength of the staff's underwriting talent for that line of business.