Demo Gulf Re: reinsurance operations day

Demo Gulf Re supports insurers across the GCC, India, and East Africa. It administers proportional and excess-of-loss treaties, receives premium and claims bordereaux, calculates ceded shares, tracks reserves and recoveries, settles commissions, and reports exposures in multiple currencies. OSERP connects treaty, underwriting account, policy, bordereau, claim, reserve, cash call, broker, reinsurer statement, and finance.

1. Create treaties and underwriting rules

The treaty header records treaty number, cedant, reinsurer, broker, class, territory, effective dates, currency, capacity, retention, cession percentage, layer, attachment, limit, reinstatement, commission, tax, collateral, and approval status. Versioning preserves terms for every underwriting period.

Field	Demo value	Impact
Treaty	GR-MOTOR-QS-2026	Contract and reporting key
Type	Quota share	Ceded allocation
Cession	40%	Premium and claim share
Retention	60%	Net exposure
Currency	USD	Settlement and FX
Commission	28%	Broker/reinsurer accounting
Territory	GCC motor	Scope and compliance
Limit	USD 25m	Capacity control

An underwriting rule checks policy class, territory, sum insured, excluded risks, sanctions, and treaty dates. A policy outside the treaty is flagged for facultative placement or exception approval.

2. Import premiums and bordereaux

Premium bordereaux contain policy, insured, risk location, inception/expiry, gross premium, tax, commission, sum insured, currency, product, and source record. The batch header stores cedant, treaty, period, file hash, source, preparer, currency, and status. Duplicate policy-period keys are rejected.

For September, ceded gross premium is USD 4,200,000 under a 40% quota share: USD 1,680,000 ceded. The statement separates gross, cession, broker commission, taxes, and net payable. Corrected files create an adjustment batch linked to the original.

3. Record claims and reserves

Claim headers record policy, treaty, claimant, loss date, peril, territory, currency, handler, status, and notification. Lines record reserve, paid amount, deductible, salvage, legal cost, expenses, ceded percentage, layer, and evidence. Reserve movements store prior/new amount, reason, approver, model, and timestamp.

A motor catastrophe claim has gross reserve USD 900,000; the quota-share ceded reserve is USD 360,000 before treaty limits and exclusions. A claim outside treaty scope remains visible as net exposure and requires placement review. Paid claims reference bank payment, recovery, and reinsurer statement.

4. Manage excess-of-loss layers and reinstatements

Layer records store attachment, limit, annual aggregate, reinstatement count, rate, deductible, event ID, and currency. A loss exceeding attachment creates layer participation and calculates ceded amount. Reinstatement records event, used limit, premium rate, days remaining, invoice, and approval.

An event aggregation links claims by catastrophe ID, location, date, and peril. Duplicate event IDs are prevented. A late claim update changes reserve and layer utilisation through an adjustment, never by editing the original event.

5. Settle brokers and reinsurers

Statement headers record reinsurer, treaty, period, currency, premium, claims, commission, tax, cash call, recoveries, balance, due date, and status. Broker lines record placement percentage, brokerage, fee, tax, and payment. Cash calls store purpose, amount, currency, approval, bank reference, and reconciliation.

The 28% commission on USD 1,680,000 ceded premium is USD 470,400. OSERP keeps commission, ceded premium, claims recoverable, and cash call accounts separate. A disputed statement records amount, reason, evidence, owner, and resolution without blocking unrelated treaties.

6. Track recoveries, salvage, and collections

Recovery records claim, reinsurer, amount, currency, expected date, evidence, status, and receipt. Salvage records asset, valuation, sale, costs, tax, and allocation. An overdue recovery enters dunning with promise-to-pay and escalation.

Receipts store payer, treaty, statement, currency, transaction ID, value date, fees, allocation, and status. Duplicate bank references are idempotently rejected. A reversed recovery payment creates a reversal and leaves the original evidence intact.

7. Compliance, collateral, and data controls

Reinsurer profiles store licence, rating, sanctions result, country, collateral type, amount, expiry, and authorised classes. Collateral records letter of credit or trust account, beneficiary, value, currency, renewal, and release condition. Expired collateral blocks new capacity unless risk approval exists.

Regulatory reports preserve gross written premium, ceded premium, net retention, claims, recoverables, exposure, concentration, collateral, and solvency metrics. Sensitive claimant data is access-controlled and every export is logged.

8. Multi-currency close and treaty reporting

Policies may be AED or SAR, treaties USD, and African claims KES or ZAR. Each bordereau, claim, statement, receipt, commission, and supplier bill stores transaction rate, source, timestamp, realised FX, and revaluation status. Ceded premium, claims recoverable, commission, tax, and FX remain separate dimensions.

Close reconciles bordereaux to policy records, premium to statements, claims to reserves, layers to event aggregates, recoveries to bank, commissions to broker contracts, collateral, tax, FX, and GL. Treaty dashboards show cession, loss ratio, combined ratio, recoverable ageing, capacity utilisation, and concentration.

KPI	Before OSERP discipline	After OSERP discipline	Improvement
Bordereau validation cycle	12 days	3 days	75% faster
Claims recoverable accuracy	91.8%	99.2%	+7.4 points
Statement reconciliation	24 days	8 days	67% faster
Recoverable ageing over 90 days	16%	6%	63% lower
Treaty close	19 days	6 days	68% faster

Practice challenge

Create a quota-share treaty and excess-of-loss layer, import a premium bordereau, reject a duplicate policy, register a catastrophe claim, calculate ceded reserve, consume layer capacity, create reinstatement premium, settle broker commission, issue a cash call, record a recovery, revalue a KES claim, and close the treaty period. Explain every field, formula, permission, journal, tax result, API identifier, exception, and audit event.

Related: Insurance operations day, AR Invoice field guide, Payment Receipt field guide, Bank Reconciliation field guide, and API cookbook.