Here's how we view our role in the placement of reinsurance: we work to provide focused attention to each client, delivering innovative solutions. That involves the placement of reinsurance, but it also demands a comprehensive approach to the client's goals, strategies and risk management needs.

We work with the client to design and place a reinsurance program, but our job doesn't stop there. We develop an understanding of each client's exposures and a program to mitigate them, and work throughout the year to make sure the program is up to date and the client's objectives are being achieved.

Insurers have varying reasons to purchase reinsurance, including:

• Stabilization of net results
• Catastrophe protection
• Strengthening their financial structure
• Risk capacity
• Increased premium capacity

As the reinsurance broker, it's also our responsibility to ensure that the program:

• Is cost effective
• Provides the coverage needed in an efficient manner
• Offers flexibility and ease of administration
• Is placed with top-flight reinsurance partners

Developing the structure: working hand-in-hand with the client

Each insurer has specific needs and objectives, and each of our client relationships is unique. Typically, a process of developing a reinsurance structure and placing a reinsurance program might look like this:

1. Discuss with management to determine reinsurance objectives and risk appetite.

We prepare a customized questionnaire, seeking the information we need to conduct a thorough review and analysis of the client's business. We make sure we understand the client's business goals and reinsurance needs. We provide, at an early stage, draft contract wording for the client to review, so that all contract terms are agreed upon when we place the business.

2. Analyze and model data to identify expected loss trends.

Our analytical services come into play from the very start. Some examples: evaluating retentions, to determine tolerances for earnings volatility; peer group analyses; experience and exposure pricing; and dynamic reinsurance modeling, to quantify the impacts of frequency and severity volatility.

3. Review all reinsurance structure and pricing options with the client.

We evaluate the effectiveness of your program in the past. Utilizing our analyses, we offer different options and recommendations for structures that will serve your needs in the future. We have worked with all structure and pricing options for all lines of reinsurance - broad books of property, casualty, life and health business, programs for specialists in such areas as workers' compensation, professional liability, and programs to deal with catastrophe exposures.

4. Prepare the submission.

Our brokers anticipate the perspectives of reinsurers and ensure that submissions include all necessary data. We make it understandable and easy for the reinsurers to follow. We know from experience that the submission will be given the attention it needs if it's complete and easily accessible.

5. Discuss potential reinsurance markets with the client's management team.

We maintain an active list of reinsurers, identified for their security as monitored by our Market Commmittee. During the placement process, we may escort the client on marketing visits with key reinsurers. Where possible, we meet with more than just the underwriter on the program, discussing specifics on exposures, pricing and terms. We want the resulting quote to reflect the additional detail garnered on these visits - to best meet the client's needs.

6. Approach the market for pricing.

Throughout our history, we have worked diligently to develop strong relationships with reinsurers around the world. We know the experienced underwriting and actuarial professionals with strong knowledge and expertise in all lines of business.

7. Identify risk/reward characteristics of various layers in the program, based on market pricing and updated analyses.

We work collaboratively with the client to determine the final structure and terms to be sent to the market for authorization. We analyze all potential structures and prices to provide our clients guidance on selecting the optimal reinsurance program that will be both effective and efficient.

8. Present market authorizations to management and complete the placement based on final directions from the client.

We make sure that contract certainty is in place - that, prior to the inception date, all contract terms are agreed upon by the cedant and the reinsurer, and all of the reinsurance security meets with the approval of the client. And we remain in frequent communication, providing access to all of our client services.

A year-round service approach

Collins strongly encourages interaction and communication between our clients and their supporting reinsurers. We believe this helps provide reinsurers with a better understanding and familiarity with the interests and objectives of our clients. But make no mistake: Collins is prepared to represent our clients' positions aggressively.

A common concern among reinsurers is that their business not be concentrated in the hands of just a few brokers. Because of our independence, as well as our expertise in virtually all lines of reinsurance, we provide an attractive alternative for many reinsurers in the United States, London, Bermuda and Europe. Many of our active markets have asked us how they can help attract new business and diversify their business mix. And throughout the year we frequently introduce new markets to our clients, to generate their interest in future participation.