Reinsurers evaluating a commutation proposal on a catastrophe contract used us to perform and in-depth analysis of the opened and re-opened claims with the goal of providing an ultimate value. We evaluated the cedant's claims handling practices, including the use of legal, and the pattern of reserving and settlements.
"...we used your report to negotiate a reduction of nearly $500,000 off of the original commutation proposal..." A Bermuda Reinsurer
Underwriting Practice and Strategy Evaluations
Insurers often like a "second set of eyes" to offer an independent evaluation of the strategy, guidelines and execution of a property underwriting business unit.
Lighthouse has accompanied several acquisition teams on due diligence assignments. We evaluated the underwriting quality of the potential acquisition against industry Best Practices. We met with the management team to review the strategy, underwriting practices and catastrophe management protocols. Extensive file reviews were conducted to evaluate the underwriting discipline at the transactional level.
Auditor Training: The Art of the Audit
The annual reinsurance audit is, for most underwriters, like a trip to the dentist. Necessary, but the shorter the better. It doesn't have to be that way. The goal of "The Art of the Audit" is to train property reinsurance underwriters in the art of the audit in order to make them more effective reinsurance underwriters. Click here to see a syllabus for the course.
Lighthouse has been engaged by insurers and reinsurers to consult on a number of different projects. Each new assignment begins with a review of your objectives, a draft scope, and then a formal scope document for the project. Here are some assignments conducted by Lighthouse.
Lighthouse Consulting LLC