Reinsurance Financial Structures
A variety of options for both facultative and treaty reinsurance give you greater control over your premium flow.
The most common ceding model is 100% quote share. In this scenario, you set your own rate for equipment breakdown coverage and cede the premium to Travelers BoilerRe, retaining a commission. We're typically able to support current filed rates, and would create the commission and profit-sharing based on current program structure.
For greater flexibility, you can also do a custom quota share, typically between 10% and 50%.
If you choose to forego a ceding commission to reduce your reinsurance costs, we work with you to develop a net reinsurance rate. The net pricing model is attractive for clients with long-standing books or who determine equipment breakdown premiums based on a percentage of their modified property premium. We offer you the net cost to provide industry-leading coverage and valuable client services at a competitive price.
With the growth and magnitude of CAT exposures, many are re-evaluating their reinsurance purchasing strategy, and looking for net lines that improve their overall loss ratio. Because the equipment breakdown product line can be highly profitable and ceded premium is closely scrutinized, you may want to consider retaining some of your equipment breakdown risk.