In short: every reinsurance conversation — at NADA, at a 20 group, across your own desk — uses the same vocabulary: ownership, wealth, transparency, participation. The words are identical; the structures underneath are not. The dealers who choose well are the ones who translate every pitch into four verifiable facts: what structure is this, what does it cost in full, who handles claims, and what does the exit look like. Everything else is presentation.
Why pitches converge and programs don’t
Marketing language is free, so everyone uses the best of it. "You own the profits" can describe a Retro share, a CFC you control, or a DOWC with your name on the licenses — arrangements with completely different ownership, capital, and control. The pitch converges; the agreements diverge. Your job in the conversation is to get from the vocabulary to the actual structure as fast as politely possible.
The four-fact translation
Which structure, exactly? Retro, CFC, Super CFC, NCFC, DOWC, or a hybrid — by name. A presenter who resists naming the structure is selling the story, not the program.
What does it cost, in full? Every fee, itemized, and the total as a share of premium. "Standard fees" is not an answer.
Who adjudicates claims, and how have they performed? The administrator’s claims history on books like yours matters more than two points of anything.
What happens if I leave? Runoff terms, reserve treatment, exit fees. The end of the agreement is where its quality shows.
The tells, in both directions
Caution signs: projections shown only as best cases; urgency ("sign by month end"); reluctance to put fees in writing; discomfort with your accountant reviewing the agreement; and pitches that lead with tax benefits rather than underwriting economics.
Good signs: the presenter asks about your volume, penetration, and product mix before recommending anything; shows you a realistic range including a bad-claims year; offers sample statements unprompted; and is comfortable being compared directly against alternatives.
After the conversation
Take the proposal home and model it yourself on the performance estimator with your real numbers and a stress-tested loss ratio. Then run the questions-to-ask checklist in writing. A program that survives your own math and ten written questions is worth a second meeting.
When to ask for help
If you have collected proposals and want them translated into comparable economics, that is a review Elite FI Partners does routinely — every structure on the table, modeled on your production, with the trade-offs stated plainly.
Frequently asked questions
How do I evaluate a reinsurance pitch at a trade show?
Translate it into four facts before you engage with the story: the exact structure by name, the full itemized cost as a share of premium, the administrator’s claims history, and the exit terms. A presenter who answers all four directly is worth a follow-up; one who returns to the vocabulary of ownership and wealth is not.
What questions cut through a reinsurance sales pitch?
Ask: "Which structure is this, exactly?", "Can I have every fee itemized in writing?", "What were loss ratios on comparable books?", and "What happens to my reserves if I leave?" These four are quick to answer honestly and hard to answer evasively, which is what makes them diagnostic.
Should I sign a reinsurance agreement at a show or event?
No. Any program worth joining is worth modeling on your own numbers and reviewing with your own advisors first. Urgency pricing and sign-today incentives are themselves signals to slow down — good structures do not expire at the end of the conference.
This article is educational and is not tax, legal, or accounting advice. Reinsurance decisions should be reviewed with qualified professionals on your dealership’s actual numbers.