Reinsurance Claims Audits

Independent Assurance on Complex, High-Value Exposures: Identifying Leakage, Compliance and Recoverability Risk

Robert Sherman

U.S. Head of Audit & Advisory

How much value is at stake in your reinsurance claims?

Reinsurance claims can represent material financial exposures within a portfolio. As they mature, reinsurers face uncertainty over treaty compliance, reserving accuracy, recoverability and final disclosure, particularly on large, long-tail or legacy claims. Without independent assurance you risk avoidable leakage, disputed recoveries and governance headaches.

How Pro Global Helps

Pro Global provides independent, outcome-focused reinsurance claims audits that turn uncertainty into defensible, measurable outcomes without placing a heavy burden on your internal teams. We go beyond simple peer review to test treaty compliance, claims handling and reserving, allocations and recoverability, and dispute risk.

Why Pro Global for Reinsurance Claims Audits?

Market reviews consistently show claims leakage in the high single digits. On a treaty with $100m of ceded losses, a 5% leakage factor represents $5m of value at stake in a single underwriting year, directly influencing loss ratios, profit commissions, collateral requirements and renewal pricing. The 5 to 10% range is a conservative estimate against wider industry benchmarks for complex or legacy portfolios.

Independent assurance delivered by dedicated reinsurance claims experts with experience across a wide range of treaty structures, claim classes and cedent profiles.

An efficient alternative to traditional audits that avoids significant internal resource commitment.

Pragmatic reporting designed to support stronger reinsurer-cedent relationships and underwriting, claims and finance decision making.

Every audit tests: compliance with treaty terms and reporting requirements; appropriateness of claims handling and reserving; accuracy of allocations and recoverability; identification of dispute risk and undisclosed exposure; and delivers clear findings that support decision making.

Independent reinsurance claims audits turn uncertainty into defensible, measurable outcomes: identifying leakage, protecting recoveries and bringing clarity to your portfolio.

A Simple Proven Review Process

STEP 1:

Trigger & Scope

Deteriorating treaty performance, complex or long-tail losses, data issues, renewals or regulatory scrutiny: we agree the treaties and claims to review.

STEP 2:

Claims & Treaty Review

Our reinsurance claims experts test treaty compliance, claims handling, reserving, allocations and recoverability.

STEP 3:

Findings & Quantification

Clear, defensible findings that quantify leakage, dispute risk and undisclosed exposure.

STEP 4:

Recovery & Relationship

Pragmatic reporting to protect recoveries and support stronger reinsurer-cedent relationships at renewal.

Client Success Story

Transactional Review

Challenge:
A global reinsurance carrier operating across US and international assumed business relied on cedant-submitted risk written bordereaux to support underwriting decisions, program renewals and downstream reporting, and needed independent assurance that this critical risk data was accurate, complete and reliable.

Solution:
Pro Global carried out an independent transactional review of the bordereaux data so that discrepancies could be identified and addressed in a structured, practical way.

Outcome:
Independent assurance over the risk data feeding underwriting, renewals and reporting, with discrepancies surfaced and addressed in a structured way.

When to trigger a reinsurance claims audit

  • Deteriorating performance: poor financial results on specific treaties.
  • Complex losses: large or long-tail losses with material exposure.
  • Data issues: frequent errors, inconsistencies or delays in claims reporting.
  • Strategic shifts: treaties approaching renewal, significant portfolio changes or new market entries.
  • Oversight needs: regulatory scrutiny on reserving or a need to verify internal claims handling.

FAQs

Compliance with treaty terms and reporting requirements, the appropriateness of claims handling and reserving, the accuracy of allocations and recoverability, and the identification of dispute risk and undisclosed exposure.

When treaties are underperforming, when large or long-tail losses carry material exposure, when claims reporting shows errors or delays, ahead of renewals or portfolio changes, or when regulators are scrutinizing reserving.

Market reviews put claims leakage in the high single digits. On $100m of ceded losses, 5% leakage is $5m of value at stake in one underwriting year, and the 5 to 10% range is conservative for complex or legacy portfolios.

No. Our reporting is pragmatic and commercially focused, designed to support stronger reinsurer-cedent relationships rather than create disputes.

Protect your recoveries.
Start with a focused discussion to identify risk and bring clarity to your reinsurance claims portfolio.

Speak with our reinsurance claims audit specialists to discuss your treaties and explore how much value Pro Global could help you protect.

Let's discuss your requirements

Most engagements begin with an initial discussion to define priorities and scope before committing to a full audit.

Please get in touch to discuss how we can assist with your specific portfolio needs.

Latest Insights

Week in the life of a Junior Paralegal at Pro Legal Solutions

In this new blog series, we catch up with the Pro Legal Solutions team as they share daily insights into their jobs, from trends shaping […]

Meet the Pros: Klaudia Demczuk

This November, Klaudia Demczuk celebrates seven years at Pro Global, having joined the business in 2019 as a Technician before progressing into her current role […]

Meet the Pros: Susan Abrahams

Susan joined Pro Insurance Solutions in 2015 as Executive Assistant (EA) to the Group CEO and Group Head of Claims, before moving over to the […]

Pro Global Contact Form

Please fill out the following form so that we can connect you with the specialists best suited to your enquiry.

Pro Global Newsletter

By filling in the following form you are agreeing to receive our newsletter and industry relevant communications