Inspection of Records


Inspections can take various forms but are generally either due diligence reviews or a full technical inspection.

The latter more extensive form, which Cranmore’s personnel have completed in all major classes of business, allows a reinsurer to obtain the comfort that:

  • The business reinsured equates with the contractual terms and conditions and the representations made by the ceding company on placement of the contract;
  • All premium has been correctly recorded and paid in accordance with the terms of the contract;
  • Any inuring reinsurance has been correctly applied for the benefit of the reinsurer;
  • The claims being reported are covered under both the underlying insurance and reinsurance contracts; and
  • The quantum of both the accounted claims and any reserves are correct.

If discrepancies exist, these will be identified and, if appropriate, corrected. From our experience, the effect of these corrections has been to ensure that the inspection of records is a cost-effective process.

In addition, the information obtained from an inspection enables the reinsurer to better evaluate the contract and amend its terms and conditions going forward if required. As well as the required level of reserving, the probable further development and, if desired, the appropriateness for commutation of the contract or book of business under review.

The professional and commercial approach of the Cranmore team enables the inspection to be focused and conducted in a business-like manner. This approach has the additional benefit of allowing the reinsurer to continue its relationship with the ceding company should the reinsurer wish to do so.

If you would like more information on this or other services that Cranmore provide, please use the details on the contact page or email [email protected].