Bordereau Reporting

June, 2011

Issue 3

In This Issue

· Real-time data reports are a “Game changer”

· New standards: a “threat” to brokers?

· A new way to underwrite treaty reinsurance


Mosaic Reports

Aggregate Wind Limits by State

Premium-Claim Production

Claims Paid

Triangle Report

Premium Production

Aggregate EQ Exposure for Oregon




Insurance Day Broker Threat

Insurance Day Australian Coverholders

Intelligent Insurer Article

Prior Newsletters

· April

· May



New Bordereau System Ad

Bordereau System Brochure

CATEX TV Broadcasts

Bordereau System Demo



To see a 10 minute video or to learn more please contact:


Jaime Ponce

US Phone: 609-683-0888


Tom Bailey

UK Phone: 44 (0)20-7663-5656

Australian Coverholder Business Gains Ground


Read the article at left from the June 6, 2011 Insurance Day newspaper in London. Lloyd’s premium volume from Australia has jumped by 30% and a vast portion of that new premium is directly related to Lloyd’ s coverholders in Australia. In fact the entire trend validates the Lloyd’s business plan found on their website that describes delegated authority business as the fastest, most efficient way to promote the Lloyd’s brand and increase its exposure globally.


Our Australian friends are taking it to heart and we congratulate them on achieving such a dramatic increase. Remember, that you too will be dealing with the effects of enhanced delegated authority data standards and CATEX wants to help you any way we can.


Please see our earlier newsletters at left, or contact us directly if you want us to arrange a demo of the 100% web-based CATEX Bordereau/Program Management System.



Data is great….and more data is better, right?


That’s what everyone says. Underwriters, actuaries, claim examiners, are all bordereau data omnivores. They want all kinds of it and they always want more of it! Service providers have tended to react in two ways to this appetite trend.


The Quarterly Reports Arrive!

Some service providers have been earning a good living catering to that adage. The result has been a deluge of data that comes in a Niagara Falls type of torrent. Annual or quarterly bordereau data can hit the reviewer with the force of a piano dropped from the tenth floor! Examining the data in any intelligent manner such as, by product, by coverholder, or by market is impossible. A mass of indigestible data is sent but the all important “reporting requirement” tick box is checked.


Sure, we’ll do that for you…ka-chingchingching

The other trend we’ve found in reporting is the so called “hand-off” approach or give the data reporting problem to someone else. Plenty of people have earned a good living performing what are essentially administrative chores that result in them receiving a split brokerage or underwriting commission for the effort. The meter keeps running no matter what happens. What’s worse is that the coverholder or market can be made to feel like a supplicant when asking for reports and information about their own data.


What would you think of a system for bordereau reporting that ensures compliance with any standard and allows you instant, real-time, access to your risk exposures, risk limits, claims location, claim amounts and premium and claim loss triangles presented in an aged manner? Too good to be true?


The CATEX Bordereau/Program Reporting System uses our Mosaic Reporting Suite to pull real time data from the countless individual risk locations you’ve loaded into the system. Users can select any data set captured by the system and display it in nearly an infinite number of ways. We’ve selected just a few of those data report displays and pulled sample data from our systems to show you how reports can look to you Be sure to see the reports that include ageing as a metric in calculating earned premiums and paid claims.


Click the link marked Bordereau Mosaic Reports at left and see for yourself. With the Pivot Point Bordereau/Program Management System you can access data like this, and more, anytime you want. You can make the data available to any business partners too so that they see only their own retail books or insured risks.

Bordereau Standards a “Threat” to Brokers?


Description: image004Read the article from the May 23, 2011 edition of Insurance Day marked as Broker Threat at left. We were surprised by this. Right now so-called “binding brokers” are doing good work processing bordereau data from thousands of coverholders and translating it into acceptable formats for Lloyd’s syndicates. They perform a service for many US coverholders who don’t care to be involved with the nuances of the London market. Many binding brokers even arrange the market covers for delegated authority holders.


Why would some of them view the new reporting standards as a “threat”? Apparently, some of them are worried that coverholders will use systems (like ours) to send the “granulated” bordereau data direct to the syndicates and to Lloyd’s and “by-pass” the brokers.

Hmm…we’re going to touch that one but if any broker does feel threatened the quickest and most cost effective way for a binding broker to cement the relationship with either coverholders or markets is to use the CATEX Bordereau Management System.


With the reporting data and live information you’ll be able to provide your coverholder client or delegated authority market you’ll soon find that your role will become much more valuable than it is today.


We know that Treaty Locations come by Pony Express…..


…but your responses can be much faster! If you are reinsurer or syndicate who provides coverage for treaty risks we know that the exact street addresses of the risks that you are partially responsible for eventually do show up at your door. Usually though the location information arrives long after you’ve committed your company to the cover and sometimes even after you’ve had to pay a claim on the risk(s).


We think that this is sort of an odd way to do business –especially when tools exist to rapidly and accurately upload all those locations and analyze them with an internal or external model.


We know it’s difficult to ask for the location data if you’re a bit down the queue from the lead underwriter but it does eventually come to you. What do you do with those locations now? Why not load them into our system and then run the premium and claim loss triangle against it? Next year when the broker asks you to renew you can point out the spikes to him and ask for more premium or ask him to exclude it.

The Treaty Locations on their way to you


Bordereau Survey Results


We have the results from the thousands of bordereau survey results we sent. We’re also pleased to note that hundreds of respondents are drinking Starbucks coffee on us! Thanks for completing the form.

- Here are some of the highlights:

- Average number of personnel dedicated exclusively to bordereau reporting: 2

- Average amount of company hours monthly spent on bordereau reporting: >20

- Percentage of respondents being pushed for better data: 65%

- Percentage of respondents interested in “real-time” data reports: 80%

- 100% of respondents were interested in learning more about cutting bordereau reporting time, reporting more accurately and using that data for underwriting purposes.


TPA’s Using CATEX System


In the last newsletter we noted that the Bordereau/Program Management System was an ideal tool for Third Party Administrators to use in processing bordereau claims for markets. We had been envisaging so called straight through TPA’s who specialize in claims incurred in varied product lines. We’ve received numerous inquiries from them but we’ve also licensed the system to TPA’s who function as claims legal defense counsel to London markets.


We’ve also encountered service firms retained by syndicates to perform audits of US coverholders. The discussions with them are very on point. They are being pushed by markets who in turn are being pushed by Lloyd’s and the auditors in turn have to push the coverholders. The goal? Better aggregated and disaggregated “street view” data.


We never seem to stop learning about the US coverholder market and the types of companies involved with it. Considering that the US Delegated Authority business produces over $4 billion annually in premiums for Lloyd’s that shouldn’t be a surprise.