How often should a dealer review a reinsurance program?
Most dealers benefit from a formal review at least once a year, alongside reading each statement as it arrives. An annual rhythm keeps fees, product performance, claims, and reserves visible while any adjustments are still easy to make, and it keeps your questions and benchmarks current ahead of a renewal or renegotiation.
What reports should a dealer receive?
At a minimum, you should be able to see written premium, earned premium, unearned premium, claims paid, claims reserves, the expense load, investment activity, distributions, and your current reserve position, ideally with product-level detail and a balance that reconciles from one statement to the next. Monthly or quarterly reporting is typical; annual-only is rarely enough to manage by.
Is a low loss ratio always better?
No. A lower loss ratio can mean a well-priced, well-managed book, but an unusually low one can also signal a product customers rarely use or do not value, which affects retention and the health of the relationship. A healthy program balances customer value with underwriting profit, so the loss ratio is best read in context and across several years rather than treated as a single score.
Can a dealer improve a program without switching providers?
Often, yes. Many improvements happen in place: renegotiating fees at your current volume, tuning the product mix, raising reporting standards, or graduating the structure as you grow. Switching providers is a separate decision with its own costs, and it is not the only path to a better result.
What happens to reserves if a program changes?
Typically, contracts already written remain in the existing program and run off under its original terms, earning out and paying claims on their own schedule, while new business is directed to the new arrangement. That means the reserves you have built are governed by the agreement you already signed, which is exactly why exit and runoff terms are worth understanding before any change.
How can a dealer compare fees between programs?
Reduce each program to one comparable number: total expenses as a share of premium, with every fee itemized. Two programs with the same headline administration fee can carry very different total costs once ceding, claims handling, management, and investment expenses are included. Comparing that full load, rather than a single line, is how you compare fairly.
When should a dealer consider another structure?
Usually when the current structure is limiting you rather than serving you, for example when production has outgrown a premium cap, when ownership or control goals have changed, or when the economics no longer fit. The honest answer comes from comparing the options on your real production and reviewing any tax or legal implications with qualified professionals.