REINSURANCE
We approach reinsurance markets in Japan and overseas and broker facultative and treaty reinsurance.
01 ｜ FACULTATIVE ｜ Facultative reinsurance
For contracts short of capacity: coinsurance and facultative reinsurance.
We arrange an additional insurer and broker the facultative reinsurance behind its share.
Shortfalls in limits or capacity
Lines cut at renewal
Large risks beyond one insurer's retention
Eligible contracts
Contracts where the existing (lead) insurer's limit or line falls short of what the client needs
Contracts whose line was cut at renewal
Contracts beyond one insurer's retention, such as earthquake and natural catastrophe or large property and business interruption risks
What we do
We arrange an additional insurer to take the shortfall and approach reinsurers in Japan and overseas to broker facultative reinsurance behind its share.
We negotiate shares, reinsurance rates and terms, and make sure the reinsurance terms match the primary terms.
The primary contract becomes coinsurance between the existing and the additional insurer; the agency continues to handle solicitation and policy administration.
Roles and remuneration
We take no part in the agency commission on the primary contract; our only remuneration is the reinsurance brokerage. The agency commission, including on the additional coinsurer's share, is in principle received by the agency under its agreements with each insurer. We never approach the client directly.
How it works
① Share current terms and the shortfall → ② Approach additional insurers and reinsurers → ③ Finalize coinsurance and reinsurance terms → ④ Follow-up after placement and renewal
02 ｜ TREATY ｜ Treaty reinsurance
We design and broker treaty reinsurance programs for kyosai bodies and small-amount, short-term insurers.
We approach several reinsurers in Japan and overseas at once and compare terms.
Quota share, surplus and XoL design
Negotiating ceding and profit commissions and treaty limits
Annual renewal negotiations
Typical needs
Checking whether current reinsurance terms are in line with the market
Writing more business within retention and solvency margin constraints
Moving from case-by-case facultative cessions to a treaty
Securing reinsurance capacity for a new product
Reducing concentration on one reinsurer
What we do
We design a program combining quota share, surplus and XoL to fit your retention policy and capital efficiency.
We approach reinsurers, including shared placements across several reinsurers, and negotiate cession rates and retentions, ceding and profit commissions, treaty limits (per event and annual), and settlement and reporting terms.
We prepare the submission (including in English), negotiate treaty wordings, and handle correspondence with overseas reinsurers in English.
Roles and remuneration
Reinsurance brokerage is generally paid by the reinsurers. After placement, we handle the annual renewal negotiations.
How it works
① Meeting and NDA → ② Underwriting and loss ratio data → ③ Program proposal → ④ Market approach and comparison → ⑤ Placement and renewal
MARKET APPROACH
From Submission to Negotiation
Preparing the submission
For facultative reinsurance, we set out the risk information, sum insured, loss history and probable maximum loss (PML). For treaty reinsurance, we analyze underwriting results, loss ratios, accumulations and retention policy, and put together material reinsurers can underwrite from.
Selecting and negotiating with reinsurers
We choose which reinsurers to approach based on their underwriting appetite, lines and capacity. Where one cannot take the whole risk, we spread it across several and negotiate shares, rates and terms.
Aligning with the primary contract
We check and align coverage, exclusions, limits of liability, and claims and settlement terms so that the primary and reinsurance contracts do not diverge.
TRACK RECORD
Reinsurance Programs We Have Built
Launching a receivables credit kyosai
For a receivables credit kyosai offered by an industrial kyosai body, we designed a reinsurance scheme reflecting the nature of the kyosai business and the credit risk, and built an underwriting panel of several overseas reinsurers. This enabled the product's launch and its later growth in capacity.
FAQ
Frequently Asked Questions
Does coinsurance change who the client deals with?
No. The agency continues to handle the client relationship and the primary contract.
When is the best time to discuss treaty reinsurance?
When you plan the next business year. Reviewing it at the planning stage, rather than just before renewal, lets you build it into the plan.
Coinsurance requires the consent of the existing insurer and the additional coinsurer. Whether reinsurance is offered, and on what terms, depends on each insurer's and reinsurer's underwriting. Agency commission is governed by the arrangements between each insurer and the agency.