A reinsurance broker essentially acts as an intermediary between insurers and reinsurers. This allows insurers to get on with their core business without having to spend significant amounts of time shopping around in order to protect their bottom line.
When an insurer is setting up or renewing their reinsurance program, a reinsurance broker will utilise their expertise and relationships to assist an insurer in developing or updating a reinsurance program for their various portfolios. This expertise may include anticipating the types of information required by the reinsurers in considering a program, modeling of risk information on behalf of the insurer and travelling with the insurer to facilitate the arrangement and/or placement of the reinsurance.
A reinsurer will discuss the requirements of the insurer with multiple reinsurers in order to develop a program that will best protect the interests of the insurer. A reinsurance broker will generally approach many markets for the various portfolios of the insured, both locally and overseas. Therefore, it is important for a reinsurance broker to maintain access to as many markets as possible in order to arrange the best possible outcome for their client.