The Board of the insurance company has to approve the reinsurance strategy in many jurisdictions. Many questions about reinsurance are up to the Board in its oversight role. These challenge its ability to comprehend a quite technical subject matter and go beyond figures to crystallise a strategy in a volatile environment.
Is the organisation of the reinsurance function put in place by Management adequate to identify and manage reinsurance issues? Is the reporting pack about reinsurance submitted to the Board appropriate for decision-taking ? Is the strategic dependence to reinsurance controlled ? Are important or complex transactions identified and actually discussed by the Board ?
A taxonomy of reinsurance issues in the boardroom may be helpful.