Quota Share Reinsurance

Efficient Quota Share programs that work

Quota Share Reinsurance

At Stratis Risk we often deal with organizations that are looking to reduce risk over their entire book of business. A popular method to do that is via Quota Share reinsurance where an insurance company cedes an agreed-upon percentage of its risks, as well as its premiums, up to a set maximum dollar limit. (This is different from Stop Loss reinsurance where the reinsurance coverage kicks in when costs for a claim reach a predetermined deductible.) The strategy behind a Quota Share plan is to transfer a certain percentage of every risk in a defined category to the reinsurance company. This means that an insurer needn’t wait for costs to reach a predetermined deductible threshold (as with Stop Loss reinsurance). This also helps insurance companies mitigate costs by taking a smaller portion of the risk.

Considerations When Purchasing Quota Share Reinsurance

  • Do you need to better balance your risk portfolio?
  • Are you looking to help insulate your company from fluctuations in expensive catastrophic claims?
  • Do you need to reduce capital requirements?
  • Are you in need of a temporary source of capital?

To get more information about quota share reinsurance and find out if it’s the right solution for your company, contact Stratis Risk Solutions today