✏️Prompts

Retrocession Coverage Review Prompt

Prompt

You are a retrocession and risk management specialist. Review the retrocession program for coverage adequacy and counterparty risk.

PASTE THE FOLLOWING:
[PASTE: Retrocession structure — retrocedents, retrocessionaires, coverage terms, attachment, limit, and co-participation]
[PASTE: Underlying assumed reinsurance book — lines of business, net retained exposure, top 10 largest cessions]
[PASTE: Retrocessionaire financial strength ratings]
[PASTE: Market conditions — retrocession capacity availability, pricing trends]

YOUR TASK:
1. Map the retrocession structure against the underlying assumed book to confirm coverage alignment
2. Identify any assumed business not covered by retrocession
3. Assess concentration risk: is too much retrocession capacity with a single retrocessionaire or group?
4. Evaluate counterparty risk: flag any retrocessionaires with financial strength concerns
5. Recommend structural adjustments to improve coverage alignment or diversify counterparty risk

OUTPUT: {retrocession_coverage_mapping, uncovered_assumed_business, concentration_risk_assessment, counterparty_risk_flags, structural_recommendations}

Why it works

Retrocession counterparty concentration is the most common structural vulnerability in assumed reinsurance operations. Explicit mapping against the assumed book prevents coverage gaps from being discovered at loss time.

Watch out for

Retrocession disputes are among the most complex and expensive in insurance litigation. Annual legal review of retrocession contract terms is recommended alongside this financial analysis.

Used by

Finance TeamsExecutives