Basic Information needed for the assessment of treaty proposals

1. Ceding Company:

• Most recent annual report of ceding company
• Full name and address
• History of company
• Information on products
• Market share
• Number of employees
• Possible rating by Standard & Poor's, AM Best, Moody's, and/or Fitch.
• Any brochures available

2. Contract:

• Type of contract (Quota Share, Excess of Loss, Surplus, ect.)
• Limits per risk and per bond (basic and special limits)
• Retention (gross and net e.g. retention covered by X/L)
• Other conditions e.g. commission, profit commission, management expenses etc.
• Exclusions
• Treaty wording including a description of anyone risk etc
• Description of present portfolio e.g.;
• for a bond treaty; a breakdown in performance bonds, maintenance bonds, ect.
• for a credit treaty; a breakdown in sectors e.g. food & drink, tabacco, textiles etc.
• Statistics of previous years showing premium income and losses (paid and outstanding)
• Name(s) of leading re-insurer(s) and other re-insurers that take part in this contract or to whom this contract has been offered
• Most recent premium volume, preferably broken down per type of business

3. Risks:

• A full description of the type of risks to be covered plus an indication of the average and/or maximum duration of the risks
• A breakdown of the number of risks according to assured amount e.g.

4. Details about Underwriter(s):

• Number of underwriters employed by ceding company
• A description of the experience of the underwriter(s) plus, if possible, information about results from his/her previous positions
• Underwriting Guidelines:
• Premium rates (if possible per type of bond)
• What are the target markets/sectors?
• What are the markets / sectors to be avoided?
• Are clients visited by underwriters?
• Financial analysis of risks: how does ceding company assess such an analysis?
• What are minimum requirements e.g. solvency, equity, etc.
• Definition "any one risk"
• Policy of ceding company regarding counter guarantees/collateral (what kind) and are these signed by risk company and/or mother company of risk company?
• Underwriting procedures (e.g. credit committee)
• Regarding credit insurance: Percentage of coverage/ Use-factors/ Waiting periods

6. Projections of coming years:

• Expected premium volume for next 3 years in numbers
• Market share & strategy
• Growth expectations (in what area, which sectors etc.)