Reinsurance companies are in the business of selling insurance policies to insurance companies. This serves to mitigate risk in the case of a large loss event, such as a hurricane. It allows insurance companies to expand their policies and coverage. But that’s not all that reinsurance companies do. Much like insurance companies, many reinsurance companies also offer a variety of services along with their policies. The purpose of these extra services is to assist insurance companies in understanding their policies, evaluating their risk, and avoiding costly mistakes. Let’s take a closer look:
- Analysis and recommendations. Reinsurance companies can help you determine exactly how much reinsurance you may want and how much risk you should take on.
- Technical training and information technology. The reinsurance company may have tools that you can use to better grasp your policies and your plan. The company may also help train your employees to understand and use these tools.
- Accounting. Policy data, premiums, and commissions can be difficult to track, but the reinsurance company may help you account for them. The company may also review amounts paid, settled, and reserved.
By auditing their ceding companies and helping them make the correct reinsurance choice, reinsurance companies can avoid costly business errors. For this reason, many offer a number of services that increase understanding and accuracy.
Do you have a question about a commercial insurance business claim? Our experienced and knowledgeable commercial insurance attorneys are committed to getting claims paid accurately and swiftly. Contact the Voss Law Firm today to learn more about what we can do to help: 888-614-7730.