Unfortunately, but correctly so, the current reinsurance market has been compared to a game of musical chairs. The effects of secondary perils of the past five years have created a shortage of reinsurance capacity across the globe. The number of seats is limited, everyone is searching for a seat with a reinsurer. When the music stops, will you be able to rest comfortably with your reinsurance partner? Situational awareness is imperative in both the current reinsurance market and in musical chairs. One should thoroughly understand your current situation and search out creative alternatives.
- How can you ensure your company wins one of the seats?
- Use a detailed CAT analysis to assess overall risk.
- Make sure your balance sheet is strong.
- Review current clients’ claims and assess their client value.
- Review your capital reserves.
- Make moves to improve your loss ratio.
- Reduce your expense ratio.
Many Mutuals with a long history may be unable to find a seat as reinsurers may be non-renewing their current policies or increasing policies that mutual companies are unable to afford causing disruption. This is happening across the country, especially throughout the Central/Midwest reinsurance market, with above average claims due to high insurance claims from unforeseen natural disasters causing a decrease in capital and financial stability.
Who We Are
Mutual Underwriters is an insurance administrative services and managing general agency headquartered in Carmel, Indiana. We provide reinsurance to small mutuals and have new capacity unencumbered by legacy exposure. The company mission is to provide management expertise, product development, underwriting expertise, and strategic advice to small insurance companies, Mid-size insurance carriers, MGAs, and Program administrators.