Variable ceding arrangements

See how you can enhance your revenue results.

We understand you have unique goals based on your risk appetite, financial approach, information technology platform and operational process. BoilerRe offers several variable ceding arrangements that give you greater control over your premium flow. We’re happy to show how your premium will flow for a specific book of business. Our options can be supported in either a facultative or treaty model.

100% traditional quota share

This is the most prevalent model in the marketplace. You charge a predetermined rate for equipment breakdown coverage and cede the premium to BoilerRe after retaining your ceding commission. This program is eligible for profit sharing based on underwriting results. In many cases, we’re able to support your current filed rates “as is” and would create the retained cede and profit sharing based on your current structure. In this model, we provide broad coverage with traditional structure and enhanced client services.

Net pricing

Consider the net pricing model if you have annual conversations with senior management and your reinsurance team about why you cede so much equipment breakdown premium. 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. 

Risk sharing

With the growth and magnitude of CAT exposures, many are re-evaluating their reinsurance purchasing strategy. They’re looking for new and more favorable 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.

Depending on your risk appetite, we offer a risk-sharing model, providing you the opportunity to participate in the premium and loss component of the portfolio. There are two types of this model:

  • Quota share (10% - 50%)
  • Self-insured retention 

BoilerRe will collaborate with you from the start on these or customized variable ceding arrangements. We’ll take the time to understand your needs and help you arrive at the best financial solution, not just the expedient one. Under any model, you will receive valuable client services and resources.

Equipment breakdown services

Equipment breakdown services

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