Ceded reinsurance accounting from the treaty wording, not a spreadsheet — every reinstatement and commission cited to its clause
Reinstatements and commissions billed from the contract, not a spreadsheet.
See one case, screen by screen ↓Software that keeps a ceding insurer’s reinsurance accounts: cessions, loss recoveries and the adjustments the treaties make after the fact — reinstatement premiums, sliding-scale and profit commissions — and the statements of account sent to each reinsurer. Ceded Reinsurance Accounting adds agents that read those terms from the wording and work out each adjustment with the clause beside every step.
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The formulas are not hard. A reinstatement premium is the layer premium, times the share of the limit reinstated, times the rate — and, where the wording says so, times the share of the term left. A sliding-scale commission moves with the loss ratio. A profit commission comes after expenses and any deficit brought forward. What is hard is that every treaty says it a little differently, and the figures live in spreadsheets kept by one or two people and rebuilt every quarter.
So a per-risk layer gets charged with the catastrophe formula, 100 % as to time, because that is what the spreadsheet was built for. A large loss is paid in instalments, and the payment that crosses from the first reinstatement into the second is never split. A quarterly sliding-scale adjustment stops being run. A profit commission falls due and nobody claims it. Money is left unbilled or overpaid, and nobody notices.
Estimated split for a mid-size programme of 14 treaties, by spreadsheet and with the solution.
Six specialist agents read the wording, watch paid losses and work out every adjustment; the accountant approves and the controller signs.
At 09:14 on 9 October, claims pays another $2,000,000 on the Dunmore Cold Storage fire into Northmere Mutual’s per-risk excess of loss layer. Here is what happens next, screen by screen, in the working solution.
Elena’s worksheet is open on Commercial Property Per Risk Excess of Loss 2026, Layer 2: $7,500,000 excess of $2,500,000 each risk, deposit premium $3,150,000, two reinstatements at 100 % then 125 %, six reinsurers through Marlow Haig Re. A banner says $2,000,000 has just been paid on claim PR-26-04417. The limit track shows $6,000,000 already used of $22,500,000 — and the 9 September payment’s $368,219.18 reinstatement premium was never booked.
“Paid loss from claims · today 09:14 · Dunmore Cold Storage, Building 4, Wichita · $2,000,000 paid into this layer”
Elena presses “Work out the reinstatement premium”. The paid loss watcher matches the payment to risk 4417, loss date 14 June, and this layer. The loss to the layer goes from $6,000,000 to $8,000,000 — across the end of the first reinstatement at $7,500,000 — so the limit track marks the split. The wording reader confirms Article 9, version 3: 100 % then 125 %, pro rata as to amount and time, on the deposit premium.
“Loss to the layer $6,000,000 → $8,000,000 · crosses the end of the 1st reinstatement at $7,500,000”
The worksheet writes itself row by row: $1,500,000 reinstated by the first at 100 %, $500,000 by the second at 125 %, 200 of 365 days left on the treaty. $345,205.48 plus $143,835.62 is $489,041.10, rounded at the last step only. The wording pane opens Article 9.2 with the pro rata words underlined. The spreadsheet method — one rate, 100 % as to time — would have charged $840,000.
“$350,958.90 more than Article 9.2 allows”
Nothing is booked until a person approves. Elena reads each row against its clause and approves the calculation. The worksheet now carries “Approved by Elena Vasquez · 09:21”, and the payments ledger shows what each earlier payment should have cost.
The April and July payments were charged with no time pro rata: $171,221.92 and $379,726.03 to put right.
Eleven terms were read from the Layer 2 wording, each with its clause and page. One is marked unusual: pro rata as to time, from date of loss to expiry. The catastrophe layers charge reinstatement at 100 % as to time; the old spreadsheet copied the catastrophe formula. Elena confirmed the term on 2 October before it was ever used.
Unusual terms are confirmed by a person before first use.
The limits screen redraws every excess of loss layer after the 09:14 payment. Per Risk Layer 2 has $8.0M used and $14.5M left: the next $7.0M is reinstated at 125 %, then $7.5M of last limit. On Property Catastrophe Layer 1, only $1.3M of reinstatement is left; after that, the last $25M of limit is not reinstated.
On Homeowners Quota Share 2025, the loss ratio is 59.34 % once the 2024 loss carried forward under Article 11.4 is added. That puts the commission at 30.66 %, or $14,902,000, against $14,580,000 allowed provisionally: $322,000 due to Northmere, not billed. Without the carry-forward, the old spreadsheet would have claimed $1,730,000.
“The 2024 carry-forward moves the loss ratio 2.90 points and takes 2.90 points off the commission.”
Every adjustment booked since October 2024 is worked out again from the wording. $715,300.00 of commission is due and not billed — including a $393,300 profit commission on Commercial Property Surplus 2024, due since 30 June. $550,947.95 of reinstatement premium was paid too much, and $368,219.18 was never booked. 36 of 41 agree to the cent. Booked entries are not touched: each difference becomes a line on the October account.
The October account for Layer 2 is split across the six reinsurers to the cent: the $2,000,000 loss recovery, reinstatement premium on the 9 September and 9 October payments, and return premium on the April and July payments. The balance due to Northmere is $1,693,687.67; Calloway Reinsurance AG’s 25 % share is $423,421.93. Shares must total 100 % before anything can be approved.
Elena approves all six. Four are over $250,000 — Calloway, Orrin, Saltmarsh and Quillon — so they wait for Ruth. She signs with her password and the meaning of the signature recorded with it. The six statements go to Marlow Haig Re at 09:42.
Meaning of signature: “I approve this statement for issue.”
The same October account, seen by the people who carry it — what their quarter looked like, and what it looks like now.
Six specialist agents read the wording, watch paid losses and work out every adjustment; the accountant approves and the controller signs.
Reads each treaty wording and slip and turns every term that moves money into a working rule — cover, period, premium basis, deposit premium, reinstatements, commissions, carry-forwards, deficits and due dates — with clause and page.
Every 15 minutes, takes new payments from the claims system, matches each to its risk or event, treaty and layer, and keeps the cumulative loss per layer.
Works out reinstatement premium for each payment: the amount reinstated, the reinstatement it falls in, the time left, and the split where a payment crosses a boundary.
Runs sliding-scale and profit commission on each quarterly account, with losses carried forward and deficits from earlier years.
Monthly, works out every adjustment booked in the last 24 months again from the wording and lists each difference above $500 with the booked amount, the amount by the wording and the clause.
Drafts one statement per reinsurer by signed share, with clause references, in the broker’s format; remaining cents go to the largest remainders so every line totals exactly.
Approves; the controller signs large statements. The agents propose; a named person decides.
The accountant can ask in plain words — or tell it what to do — and every answer points to the clause or the screen it rests on.
Why is today’s reinstatement premium $489,041.10 and not $840,000?
Two things the spreadsheet missed. The $2,000,000 takes the loss to the layer from $6,000,000 to $8,000,000, so $1,500,000 is reinstated by the first reinstatement at 100 % and $500,000 by the second at 125 % (Art. 9.1). And Article 9.2 pro-rates by time from the date of loss: 200 of 365 days were left after 14 June. $345,205.48 + $143,835.62 = $489,041.10.
What did the old spreadsheet get wrong this year?
Three reinstatement payments on Per Risk XL Layer 2: April and July were charged with no time pro rata — $550,947.95 paid too much; the 9 Sep payment’s $368,219.18 was never booked. The catastrophe layers agree to the cent.
Which commissions are still unbilled?
$715,300 in all. Homeowners Quota Share 2025: $322,000 additional sliding-scale commission at 30 Sep — the 2024 loss carried forward takes the rate to 30.66 %. Commercial Property Surplus 2024: $393,300 profit commission, due since 30 Jun.
Send statements over $250,000 to Ruth for signature
Done. All six October statements are approved; Calloway, Orrin, Saltmarsh and Quillon are over $250,000 and are now waiting for Ruth Achterberg. The other two can go to Marlow Haig Re once she signs.
13 screens from the working solution, on its sample data. Pick one to see it large.
When to calculate, who approves and how differences are raised are settings, chosen from the options below.
| Setting | Default | Choose from |
|---|---|---|
| Reinstatement premium | When the loss is paid | When the loss is paid · At month end · At quarter end |
| Sliding-scale and profit commission | Every quarter | Every quarter · Every month |
| Premium basis before the final premium is known | As the wording says | As the wording says · Deposit premium · Estimated final premium |
| Rounding | To the cent, final step only | To the cent, final step only · To the dollar, final step only |
| Statements to a reinsurer above | $250,000 | $100,000 · $250,000 · $500,000 |
| Re-check booked adjustments | Monthly, 24 months back | Monthly, 24 months back · Quarterly, 36 months back |
| Show a difference above | $500 | $100 · $500 · $1,000 |
| Paid losses from the claims system | Every 15 minutes | Every 15 minutes · Hourly · Daily at 06:00 |
Every figure is labelled: a target the solution is built to, an estimate, a typical published result, or a proven one.
“demo” = seen in the working solution, on its sample programme data · “target” = the design goal, measured in the live solution · “estimated” = our estimate · “typical” = published figures (Deloitte, Ceded reinsurance survey — 71% say late data leads to manual workarounds and inaccuracies; 57% have no single source for the data they need). People, companies, treaties and reinsurers named on this page are fictional — characters and sample data in the working solution.
Software that keeps a ceding insurer’s reinsurance accounts: cessions, loss recoveries and the adjustments the treaties make after the fact — reinstatement premiums, sliding-scale and profit commissions — and the statements of account sent to each reinsurer. Ceded Reinsurance Accounting adds agents that read those terms from the wording and work out each adjustment with the clause beside every step.
For each payment into an excess of loss layer it takes the loss to the layer before and after, splits the payment where it crosses into the next reinstatement, applies that reinstatement’s rate, and pro-rates by amount and — where the wording says so — by the time from the date of loss to expiry. It works from the deposit premium until the final premium is known, if the wording says so, and rounds only at the last step.
Yes. The commission calculator uses the loss ratio exactly as the wording defines it, including any loss carried forward from an earlier year, and applies the scale band by band. In the working solution, leaving out the carry-forward would have claimed $1,730,000 instead of $322,000.
Yes. It deducts the ceding commission, incurred losses, the management expense and any deficit carried forward under the wording, then applies the profit commission rate, with each step cited to its article.
No. The booked-figure checker works out every booked adjustment again and lists the differences with the clause. A difference becomes a new line on the next account; booked entries and claims data are never changed.
Yes. The agents read, calculate and draft; they never book or send. An accountant approves each calculation, the finance controller signs any statement over the threshold you set, and every step is on the audit trail.
Your treaty wordings and slips, the claims system for paid losses, quarterly premium and loss accounts, your ledger of booked adjustments, event and aggregate loss records, and your broker, who receives a technical account, spreadsheet or PDF statement per reinsurer.
The Agentic Solution Engine builds and deploys it from your requirements and documents — your treaty wordings, a quarter of paid losses and your statement format — and it goes live once every quality gate has passed. We will walk you through it on your own treaties first.
A checked renewal submission in days, not weeks, every figure traced.
1-min demoTreaty Underwriting WorkbenchA first view of every program in hours, not days.
1-min demoTreaty Wording ComparisonEvery changed clause found before signing, not when a claim tests it.
1-min demoWe’ll run Ceded Reinsurance Accounting on your own wordings and a quarter of your paid losses.