Reinsurance Reporting for Pet Insurance MGAs
Reinsurance Reporting for Pet Insurance MGAs
Reinsurance is the financial safety net behind your program and reinsurers want visibility. Your reinsurance reports are how they monitor the risk they've taken on. Late, inaccurate, or incomplete reporting doesn't just violate treaty terms it erodes the trust that makes your reinsurance program possible. Here's how to build reporting that keeps reinsurers confident.
What Does the Reinsurance Reporting Landscape Look Like?
Reinsurance reporting encompasses all data submissions that give reinsurers visibility into the risk they have assumed, including premium bordereaux, loss bordereaux, treaty performance reports, and renewal data packages. The MGA typically provides the underlying data while the carrier manages the reinsurer relationship and final submissions.
1. Who Reports What
| Report | MGA Responsibility | Carrier Responsibility |
|---|---|---|
| Premium bordereau data | Provide policy-level data | Submit to reinsurer |
| Loss bordereau data | Provide claims-level data | Submit to reinsurer |
| Treaty performance | Provide underlying analytics | Review and submit |
| Large loss notification | Identify and notify carrier | Notify reinsurer |
| Renewal data package | Compile experience data | Negotiate renewal terms |
| Treaty accounting | Calculate cessions (if delegated) | Final accounting and settlement |
2. Treaty Types and Reporting Differences
| Treaty Type | Premium Reporting | Loss Reporting | Key Metric |
|---|---|---|---|
| Quota share | Ceded % of every policy | Ceded % of every claim | Ceded loss ratio |
| Excess of loss | Ceded premium (flat or rated) | Only claims exceeding retention | Large loss activity |
| Stop loss | Aggregate ceded premium | Aggregate losses exceeding attachment | Aggregate loss ratio |
| Facultative | Per-risk ceded premium | Per-risk ceded losses | Individual risk performance |
How Do You Prepare the Monthly Premium Bordereau?
The monthly premium bordereau is a policy-level report detailing all ceded premium transactions, due 30 to 45 days after month end. Preparation involves extracting all premium transactions from your PAS, mapping them to applicable treaties, applying cession percentages, and validating totals against carrier reports.
1. Required Fields
| Field | Description | Format |
|---|---|---|
| Policy number | Unique identifier | Text |
| Insured name | Policyholder | Text |
| Pet details | Species, breed, age | Text |
| State | Policy jurisdiction | 2-letter code |
| Effective date | Coverage start | YYYY-MM-DD |
| Expiration date | Coverage end | YYYY-MM-DD |
| Transaction type | New, renewal, endorsement, cancel | Code |
| Gross premium | 100% premium | Currency |
| Cession percentage | Treaty cession % | Percentage |
| Ceded premium | Reinsurer's share | Currency |
| Ceding commission | Commission on ceded premium | Currency |
| Net ceded premium | Ceded less commission | Currency |
| Coverage limits | Annual/per-incident limits | Currency |
| Deductible | Policy deductible | Currency |
2. Bordereau Preparation Process
| Step | Action | Timeline |
|---|---|---|
| 1 | Extract all premium transactions from PAS | Day 1–3 after month close |
| 2 | Map transactions to applicable treaty | Day 3–5 |
| 3 | Apply cession percentages | Day 5–7 |
| 4 | Calculate ceding commission | Day 7–8 |
| 5 | Validate totals against carrier report | Day 8–10 |
| 6 | Resolve discrepancies | Day 10–15 |
| 7 | Format per reinsurer specifications | Day 15–20 |
| 8 | Submit to carrier (or reinsurer) | Day 20–30 |
For carrier reporting requirements, see our carrier reporting guide.
How Do You Prepare the Quarterly Loss Bordereau?
The quarterly loss bordereau provides claim-level detail of all ceded losses, due 45 to 60 days after quarter end. It must include every open and closed claim mapped to the applicable treaty, with accurate ceded incurred, paid, and reserve amounts that reconcile to the carrier's claims report.
1. Required Fields
| Field | Description | Format |
|---|---|---|
| Claim number | Unique identifier | Text |
| Policy number | Associated policy | Text |
| Date of loss | Incident date | YYYY-MM-DD |
| Date reported | Claim reported date | YYYY-MM-DD |
| Condition/diagnosis | What was treated | Code/text |
| Claim status | Open, closed, denied | Code |
| Gross incurred | 100% incurred amount | Currency |
| Gross paid | 100% paid to date | Currency |
| Gross reserve | 100% outstanding reserve | Currency |
| Cession percentage | Treaty cession % | Percentage |
| Ceded incurred | Reinsurer's share incurred | Currency |
| Ceded paid | Reinsurer's share paid | Currency |
| Ceded reserve | Reinsurer's share reserve | Currency |
2. Large Loss Reporting
| Element | Requirement |
|---|---|
| Notification threshold | Per treaty (typically >$5,000 or >$10,000) |
| Notification timing | 24–72 hours of awareness |
| Initial report contents | Claim number, policy, description, estimated amount |
| Follow-up | Regular updates until claim closed |
| Final report | Complete details upon claim closure |
What Should Treaty Performance Reports Include?
Treaty performance reports provide reinsurers with quarterly dashboards showing gross and ceded premium, incurred losses, loss ratios, claims counts, average severity, and large loss activity measured against treaty targets. Annual renewal data packages expand this to include 5-year history, loss triangles, and growth projections.
1. Quarterly Performance Dashboard
| Metric | Current Quarter | Prior Quarter | YTD | Treaty Target |
|---|---|---|---|---|
| Gross written premium | $ | $ | $ | $ |
| Ceded premium | $ | $ | $ | $ |
| Ceded earned premium | $ | $ | $ | $ |
| Ceded incurred losses | $ | $ | $ | $ |
| Ceded loss ratio | % | % | % | <65% |
| Claims count | # | # | # | Track |
| Average claim severity | $ | $ | $ | Track |
| Large losses (over threshold) | # and $ | # and $ | # and $ | Track |
2. Annual Renewal Data Package
| Data Element | Purpose |
|---|---|
| 5-year premium history | Trending and projections |
| 5-year loss history | Loss development and trending |
| Loss triangles | Development patterns |
| Rate change history | Pricing adequacy |
| Book composition | Risk profile changes |
| Growth projections | Next-year premium forecast |
| Claims analysis | Frequency, severity, large losses |
| Market analysis | Competitive and industry context |
For reinsurance accounting systems, see our technology guide.
What Data Quality Standards Must Be Met?
Reinsurance data must meet rigorous quality standards: every policy and claim in the PAS must appear in the bordereau, ceded amounts must equal gross amounts times cession percentages exactly, and all bordereau totals must reconcile to carrier reports. Pre-submission validation should verify completeness, accuracy, consistency, format, and timeliness.
1. Reconciliation Requirements
| Reconciliation | What Must Match |
|---|---|
| Bordereau → PAS | Every policy/claim in PAS appears in bordereau |
| Ceded premium → gross premium × cession % | Math must be exact |
| Loss bordereau → claims system | Every claim matches system records |
| Bordereau → carrier report | Reinsurance data consistent with carrier data |
| Quarterly totals → monthly totals | Quarterly aggregates match monthly detail |
2. Common Data Issues
| Issue | Impact | Prevention |
|---|---|---|
| Missing policies | Understated ceded premium | Automated completeness checks |
| Wrong cession percentage | Incorrect reinsurer share | Treaty table validation |
| Claims timing differences | Reserve misstatement | Consistent cutoff dates |
| Endorsement handling | Premium discrepancies | Clear endorsement processing |
| Currency rounding | Small discrepancies accumulate | Consistent rounding rules |
3. Pre-Submission Validation
| Check | What to Verify |
|---|---|
| Completeness | All policies and claims included |
| Accuracy | Calculations are correct |
| Consistency | Data matches other reports |
| Format | Meets reinsurer specifications |
| Timeliness | Will meet submission deadline |
| Reconciliation | Totals match carrier reports |
How Do You Automate Reinsurance Reporting?
Automation involves building a pipeline from data extraction through treaty mapping, cession calculation, validation, report generation, and scheduled delivery. Implementation typically takes 8 weeks, starting with mapping treaty terms and ending with live automated generation. Most MGAs achieve 80-90% automation with manual oversight on quality checks.
1. Building Automated Reinsurance Reporting
| Component | Technology | Purpose |
|---|---|---|
| Data extraction | PAS API or database queries | Pull policy and claims data |
| Treaty mapping | Rules engine | Apply correct treaty to each risk |
| Cession calculation | Automated formulas | Calculate reinsurer shares |
| Validation | Automated checks | Pre-submission quality assurance |
| Report generation | Templated output | Format per reinsurer spec |
| Delivery | Scheduled email or portal | Timely submission |
2. Implementation Steps
| Step | Action | Timeline |
|---|---|---|
| 1 | Map treaty terms to data requirements | Week 1 |
| 2 | Build data extraction from PAS | Week 2–3 |
| 3 | Create treaty mapping and cession logic | Week 3–4 |
| 4 | Build validation checks | Week 4–5 |
| 5 | Create report templates | Week 5–6 |
| 6 | Test with historical data | Week 6–7 |
| 7 | Go live with automated generation | Week 8 |
For reinsurance basics, see our introductory guide.
Frequently Asked Questions
What reinsurance reports must you prepare?
Monthly premium bordereau, quarterly loss bordereau, quarterly performance report, annual renewal package, and ad-hoc large loss notifications.
How does it differ from carrier reporting?
Reinsurance reports focus on ceded amounts the reinsurer's share. Must map each policy and claim to applicable treaty and apply cession percentages.
What data do reinsurers need?
Policy-level premium, claims-level loss data, aggregate performance metrics, and treaty-specific cession calculations. All must reconcile to carrier reports.
How often are reports due?
Monthly bordereau (30–45 days), quarterly performance (45–60 days), annual renewal package (90 days before renewal), large losses (24–72 hours).
What happens if reports are submitted late?
Late reporting violates treaty terms, delays recoveries, triggers reinsurer audit scrutiny, and erodes trust. Persistent lateness may lead to unfavorable renewal terms or loss of capacity.
How do you ensure data quality?
Implement automated completeness checks, validate ceded amounts against cession percentages, reconcile to carrier reports, use consistent cutoff dates, and run pre-submission validation checklists.
What is a treaty renewal data package?
A comprehensive submission due 90 days before renewal, including 5-year premium and loss history, loss triangles, rate changes, book composition, growth projections, and claims analysis.
Can reinsurance reporting be fully automated?
Core components like extraction, cession calculation, and formatting can be automated in 6-8 weeks. Reconciliation, exceptions, and large loss narratives require human review. Most MGAs achieve 80-90% automation.
External Sources
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