Maximize Reinsurance to Build Wealth and Achieve Your Financial Goals By STEPHEN MCLAUGHLIN Are you taking advantage of your reinsurance program to maximize results? You could be missing out on opportunities for building wealth and achieving other important financial goals. Reinsurance, like other financial and insurance solutions, can be complex to navigate. A reinsurance specialist can help you understand, how to maximize premium production, the structure(s) that will benefit you the most, and which products to include in those structures. THE THREE FOUNDATIONAL TENANTS OF REINSURANCE: 1. Premium expertise Actuarially determined premium with continuous scrutiny of attained loss ratios to drive profitable underwriting results 2. Claims discipline Expert adjudication of claims that aligns with the contractual coverage 3. Investment discipline Making sure the reinsurance trust assets are growing over the contract terms for additional financial strength of the reinsurance program SELECTING A PROVIDER When selecting a provider, you must consider the following: 1. Products that fit your needs and are expertly underwritten 2. A great delivery or sales process that will drive strong product penetrations with a customer satisfaction focus and essential legal compliance 3. A reinsurance structure that fits the needs of your owners, shareholders, and/or family for both short- and long-term wealth development 4. An advisor who can evaluate the program’s performance and make recommendations for changes as market conditions and opportunities for new products might arise SELECTING THE RIGHT STRUCTURE AND PROGRAM There are several structures to consider: controlled foreign corporation, non-controlled foreign corporation, dealer-owned warranty company and self-insured (typically nominal or no insurance backing the program). Each program has different features and benefits that need to be evaluated based on a needs analysis I S S U E 2 | 2 0 2 2 40 new jersey auto retailer
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