Claims Data and Reinsurance Recoverables Before January 2027 Renewals

Increased reinsurance capacity and a more competitive market give insurers more options ahead of January 1, 2027 renewals, but reinsurers remain selective.¹ Inconsistencies between claims, exposure and recoverables information can prompt additional questions. Reconciling those records and explaining material differences helps reinsurers assess the risk and reduces follow-up work during renewal discussions.

Make Claims Information Consistent and Usable

Renewal submissions draw on records maintained by claims, underwriting, actuarial and reinsurance teams. Differences in reporting periods, definitions or policy information can require repeated reconciliation before the figures are usable. Exposure checks should cover insured values, limits, locations and concentrations, along with changes in casualty class mix and jurisdictions.

Claims-development analysis should explain large losses, reopened files, reserve movements and loss-adjustment expenses. A few large reserve adjustments may tell a different story from deterioration across the book. Changes in severity, reporting delays or reserving practices also need to be distinguished from changes in the underlying portfolio. Recording these explanations as claims develop can reduce repeated information requests during renewals, billing reviews and management reporting.

Connect Claims Development to Program Structure

Recent large claims and developing losses can reveal where the insurer is retaining more risk than expected or where reinsurance limits may be exhausted. Comparing that experience with attachment points, retentions and limits helps the insurer and its broker evaluate alternative structures.

Claims reporting needs to keep pace with that development. Depending on treaty terms, a reserve increase may trigger notice requirements before paid losses reach an attachment point. Clear responsibilities between claims and reinsurance teams help ensure those changes receive timely attention.

Review Treaty Administration and Recoverables

Reinsurance reporting relies on loss dates, coverage periods, allocations, expense treatment and occurrence definitions that may sit in different systems or files. Missing or inconsistent information can delay billing while staff gather records or resolve discrepancies.

Review billed and unbilled recoverables to distinguish processing delays from missing support or substantive disagreements. For each aged balance, identify the reason for delay, the next action and the person responsible. Recurring documentation or reconciliation problems should lead to changes in the underlying workflow.

Track whether process changes reduce reporting and billing delays. Useful measures include the days between a treaty reporting trigger and notice to the reinsurer, the days between payment of a covered loss and reinsurance billing, and the dollar value of recoverables awaiting supporting documentation.

Five Questions Before Renewal

• Can exposure and claims information be reconciled across teams?
• Have large losses and reserve movements been explained?
• Are developing claims approaching reporting thresholds or attachment points?
• Are notices, allocations and billings supported by required records?
• What is delaying outstanding reinsurance collections?

How Alan Gray Can Help

For a head of ceded reinsurance or a claims leader preparing information for the broker, Alan Gray can help review the claims and reinsurance records supporting the renewal submission. The work can include checking loss bordereaux against underlying records, reviewing treaty notice requirements and supporting documentation, and reconciling recoverables to distinguish unbilled transactions from disputed balances and amounts awaiting documentation.² The review can identify discrepancies and documentation gaps to address before submission.

An example of Alan Gray’s work in this area is an engagement for a liquidator involving five years of premium and loss transactions that had never been billed to an insolvent carrier’s quota share reinsurers. Using original systems and paper records, Alan Gray reconstructed and issued the missing account statements, totaling $20 million due.²

Citations

1. Hannover Re, “Hannover Re sees profitable growth opportunities in an increasingly challenging market environment,” September 7, 2026.
2. Alan Gray, “Reinsurance Audit Services and Professional Auditors,” including the “Account Reconstruction” engagement example, accessed September 30, 2026.