FOR NON-LIFE INSURANCE AGENCIES
Your client and contract stay as they are; we fill the capacity gap with coinsurance and facultative reinsurance.
For contracts where the existing insurer's limit or line is not enough, we propose a coinsurance structure that brings in an additional insurer. We arrange that insurer and broker the facultative reinsurance behind its share. We take no part in the primary commission: in principle, the agency receives it, including on the additional coinsurer's share, under its agreements with each insurer.
WHEN IT HELPS
When It Helps
FEES
How Fees Work
Layer
Handled by
Fee
Primary coinsurance (existing insurer + additional coinsurer)
The agency
The agency (including on the additional coinsurer's share, under its agreements with each insurer)
Reinsurance of the additional coinsurer
Credit Hills
Reinsurance brokerage only (paid by the reinsurers)
The agency continues to handle solicitation, policy administration and commission on the primary contract; our only remuneration is the reinsurance brokerage.
BENEFITS
Benefits for Agencies
01
Client, contract and commission unchanged
The agency handles solicitation and administration of the coinsurance. In principle the agency receives the primary commission, including on the additional coinsurer's share, under its agreements with each insurer; we are not involved. We never approach the client directly.
02
Placing contracts short of capacity
For contracts that lacked capacity or need a higher limit, we approach additional insurers and reinsurers.
03
Line expertise applied to reinsurance
For specialist lines such as trade credit insurance, we use that expertise to design the reinsurance terms.
SOLUTION
Reinsurance as an option for risks primary insurance alone cannot handle.
In corporate earthquake or large property insurance, the cover needed may not be available because an insurer's capacity is insufficient or its underwriting policy has changed. In such cases, additional capacity may be available from overseas reinsurance markets.
Insufficient capacity
For the amount the existing insurer cannot cover, we seek additional capacity from overseas reinsurance markets.
Reduced lines or tougher terms at renewal
We analyze the insurer's underwriting policy and the risk information to see whether adding reinsurance can maintain or improve the terms.
Large or unusual risks
For risks the Japanese market alone finds hard to write, we look at structures that include reinsurance.
Who does what
The agency continues to handle the client relationship and the primary contract. We arrange the additional insurer and broker the reinsurance behind it.
* Whether cover is offered, and on what terms, depends on the underwriting of the primary insurers and reinsurers.
PROCESS
How It Works
STEP 01
Share the case
Current terms and the shortfall
STEP 02
Approach additional insurers and reinsurers
STEP 03
Finalize coinsurance terms
STEP 04
Follow-up after placement and renewal
FAQ
Frequently Asked Questions
Do we have to share client information?
Only the contract information needed to approach reinsurers. The agency continues to handle the client relationship and the primary contract.
Will Credit Hills approach the agency's clients directly?
No. We arrange the additional insurer and broker its reinsurance. Our only remuneration is the reinsurance brokerage paid by the reinsurers.
What kinds of contracts qualify?
There is no restriction on line or size. Typical cases are areas where primary insurers have cut capacity, such as natural catastrophe and earthquake, and specialist risks such as solar power. For lines that need know-how, such as trade credit insurance, we provide support.
Coinsurance requires the consent of the existing insurer and the additional coinsurer. Whether cover is offered, and on what terms, depends on each insurer's and reinsurer's underwriting. Our remuneration is the brokerage paid by the reinsurers.
Related: Facultative reinsurance (Reinsurance page) →