Reinsurance Technician jobs(Also known as Reinsurance Technician)
Re-insurance refers to the process under which insurance companies re-insure i.e. hedge across a range of other firms, the risks on their books. A re-insurance technician will take on a variety of roles within this process. This is a highly technical role and you will be expected amongst other things to collect debt, administer new re-insurance contracts, perform due diligence on existing, new and renewal contracts and write debit and credit notes. Reinsurance is a highly technical business. It involves the transfer or indemnification of risk from one company to another. For example, an insurance company may issue a contract to insure houses against flood damage. If a single house is damaged by a flood then the insurance company will likely have sufficient resources to meet a claim. However, if there is a large flood and all the houses the company insures are damaged, the insurer's assets may be insufficient to meet the needs of all claimants. In this event the insurance company could potentially go bust. Subsequently, an ordinary insurance company will normally approach (or be approached by) a specialist reinsurance firm such as Munich Re: or Swiss Re:. These firms will take on part of the risks of ordinary insurance companies on a case-by-case or bloc business basis. The purpose of reinsurance is to reduce the risks to a single company and by derivation, wider parties such as governments, which may be adversely affected from the fallout of the initial event or bankruptcy of the original insurer. An example of the failure to adequately hedge risks of a single large insurer was evident in the recent AIG nationalisation in the US. Reinsurance technicians play a pivotal role in this process and will normally specialise in a particular area such as aviation or marine risks. The range of risks is hugely diverse and insurance specialists will exist in everything from catastrophe risk, to aviation risk to entertainment. In taking a risk onto its books the re-insurer has to make a judgement call as to the statistical likelihood of a claim being made and also future developments which may fundamentally change the nature of the risk. A reinsurance technician may be involved in this process or may be responsible for looking at and processing claims. There are, however, several facets to the role: Technical Analysis Reinsurance technicians may assist underwriters and work with a variety of other professionals such as lawyers, statisticians and scientists, to develop views on the current and future risk probabilities. Their role is to assist in the evaluation of existing and new business including negotiating with insurers about terms, conditions and prices. They will help underwriters and brokers build bespoke insurance programmes to protect the re-insurer and meet the objectives of their clients based on price and other technical factors. Legal Analysis There are a variety of legal restrictions that may apply and these may vary across countries. Reinsurance technicians may be expected to work with lawyers in order to draft documentation and create policy wording as appropriate, or amend policies for renewals. Actuarial and Pricing Analysis You will work with actuarial professionals to monitor the pricing of re-insurance contracts. You will be expected to work on drafting initial pricing. Processing You will be expected to process claims and renewal policies, and to monitor policies to make sure that their technical provisions are being met. You will also be responsible for collecting debts on existing policies.
SalaryStarting salaries will normally be between £25,000 and £40,000, although they may be considerably higher than this. Technicians with substantial experience of a particular area will be able to command salaries in excess of £100,000
ResponsibilitiesAs a re-insurance technician you will be expected to:
- Engage in general management of contract documentation including drafting slips, cover notes, binders (record of reinsurance arrangements pending the issue of a formal reinsurance contract) and re-insurance contracts.
- Work on Treaty Accounts (an agreement between the insurer and th
- Process and assist in the calculation of Excess of Loss premiums (provide conditions for a certain predetermined threshold to be met before the reinsurer becomes liable).
- Evaluate risks within a portfolio and the potential liability to the reinsurer from indemnifying an insurer.
- Prepare credit and debit notes.
- Check that the reinsurer is not in breach of the conditions of its reinsurance contracts.
- Process and record details of reinsurance claims.
- Produce statistical reports on claims.
- Gather evidence and form a view on how the risk fits within the overall portfolio of risk e.g. is it hedged against another risk on the portfolio?
- Generally support brokers, underwriters, account managers and other team members.
- Provide background analysis to allow underwriters to assess whether a contract is reasonable and the terms of acceptance for the contract.
- Negotiate terms with insurance companies.
- Help to draft policies and advise lawyers of appropriate exclusion clauses.
- Keep meticulous records of claims that have been processed and those which have been finalised.
QualificationsYou will be expected to have strong academic qualifications including high grades at A and AS levels or equivalent. In most instances you will need to have achieved an honours degree with a minimum of a 2:1 classification. There are no specific degree subjects required but degrees in business related subjects such as business studies, actuarial sciences, mathematics, statistics or economics may be beneficial. Due to the nature of the industry, reinsurance companies are normally very large organisations. Most will have structured graduate-schemes and will encourage you to pursue professional qualifications. There is a range of insurance qualifications available. While the majority of employers require relevant experience most will not require a specific qualification. However, when applying for jobs you are likely to benefit from demonstrable qualifications. It is possible to study for an MSc in Insurance and Risk Management as well as a series of more generalist courses: These include:
- Advanced Diploma in Insurance
- Certificate in Contract Wording
- Fellowship in Insurance
- Award in Insurance
- Attention to detail - you will need to ensure that all conditions of a claim are met to ensure that the claim can be processed and validated.
- Technical knowledge of the insurance industry.
- Ability to work to tight deadlines.
- Strong organisational skills.
- Good numeracy and literary skills.
- A working knowledge of computers and computer programmes such as Excel and Word.
- For some roles you will need knowledge of specialist programmes such as IRIS and LORS.
- Excellent interpersonal, customer care and communication skills.
- For specialist areas you may require very specific skills.
Working ConditionsOffice hours are normally 9-5; however, this is a highly competitive business and you may be expected to work overtime or weekends. You will normally work from an office and the majority of your time will be spent using computers at your desk.
ExperienceAlthough the recent financial crisis has reduced the number of jobs available, the insurance industry and wider financial services industry in the UK is still one of the most important employers. The majority of roles will require you to have experience at a reinsurer or Lloyds syndicate. As a consequence, most people will start out by applying for a graduate position with a reinsurance company, Lloyds syndicate or major insurance company. It is also possible to complete an internship with larger companies but you should apply early.
EmployersRe-insurance is a highly specialist field and is dominated by a few large companies and the Lloyds syndicate: Re-insurance groups - The world's largest re-insurers are currently Munich Re: and Swiss Re:. Lloyds of London - Lloyd's is the world's leading insurance market providing specialist insurance services to businesses in over 200 countries and territories.
Career ProgressionWorking as a reinsurance technician can provide excellent exposure to a range of highly technical insurance roles. The reinsurance industry is very similar to the insurance industry but the scale of the risks and claims are likely to be much higher, running into millions and billions and transcending geographical boundaries. Natural moves may be into underwriting or brokerage. You may also move into risk consultancy.
Scott Mason, is a Reinsurance technician