Coverholder Monitoring
Objective
To establish whether the coverholder continues to demonstrate the necessary knowledge, skill, controls and experience, to effectively manage its binding authority, and a review of underwriting & claims activity and profitability.
Monitoring Scope
Underwriting
Authority terms: Risks bound are within the terms of the delegated authority, at premium levels in accordance with the premium rating schedule, and in accordance with the forecast business detailed in the underwriting plan. Aggregate management.
Claims
Authority terms: Claims handled professionally in accordance with the terms of the delegated authority, with claim referrals made to insurers for high value and / or rejected claims. Claims handling not influenced by Profit Commission incentives. Claim reserving accurate and Loss Funds repatriated where appropriate. Subrogation action management
Company Policy
Procedural adherence: Controls pertaining to the conduct of (re)insurance mediation activity evidentially adhered to, and effective Conflict of Interest management demonstrated where an actual or potential conflict has arisen.
Profitability
Assessment of profitability (including against past years where relevant), and profitability forecast in the event of intended delegated authority renewal.
Insurance Monies
Efficiency: Demonstrable efficiency in collection premiums / additional premiums / recoveries, and payment of claims – all in compliance with CASS requirements.
Assessment revisited
Governance
Company Policy
Capital & PI
Regulation & Licencing
Knowledge & Experience
Reputation
Resources
Business
Underwriting/Claims/Other/Systems
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