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The Changing Dynamics of Reinsurance:
RAPA Education Initiative
Tonya Blackmore
AVP Customer Management (Manulife Reinsurance)
Chair: RAPA Education Committee 2009
October 2009
Agenda
The Changing Dynamics of
Reinsurance
Payoff: Training & Development
RAPA Education Initiative
Questions/Discussion
2
In the Past…
Reinsurance associate profile from 5 to 10
years ago is very different than today
Data Entry
Basic Reconciliation
Little contact with reinsurers
Education – High School degree minimum
3
Today…
Reinsurance administration associate profile is
defined differently
Strong Accounting Skills
Good Written and Verbal Communication Skills
Insurance/Reinsurance or Financial background
Analytical and Problem Solving Skills
Technical Ability (Excel, MS Access)
College/University degree preferred
Industry Courses - LOMA
4
Changing Demographics of
Reinsurance Administration
Ages 55 + Ages 18-27
17% 5%
Ages 28-43
Ages 44-54 47%
31%
17% of Reinsurance Administration
Professionals Projected to Retire - 10 Years
5
Expectations of Younger Hires
Commitment to Continuous Learning
Sponsored Education
Career Planning
Personal Development
Job Paths and Career Guidance
Variety and Interesting Work
Opportunities for Advancement (lateral and vertical)
Performance Management
Support of training gaps/needs
New Hires out of College/University will have
an average of 10 - 14 jobs before they are 35
6
RAPA Education Committee
Changing roles of reinsurance professionals +
changing demographics = need to rethink existing
training and design of future formal learning
strategies
Documented procedures and standard processes
(company specific) & Industry Education
Majority ‘hands-on training’ approach
Long learning curve
GAP in the Reinsurance Industry
7
Payoff: Training & Development
Increased levels of employee engagement
Increased discretionary effort = productivity gains ($$)
Higher retention
Reduced turnover = cost savings ($$)
Preservation of Human Capital = competitive advantage,
improved customer satisfaction (KSA’s) ($$)
Succession, workforce planning and organizational
development
8
RAPA Education: Objectives
Provide a ‘training resource’ of basic learning materials for new
industry employees with no previous Life Reinsurance and/or
Insurance experience
Identify required skills, knowledge and abilities to resolve basic duties,
conduct limited analytical research and independently manage basic
duties by 3rd month of employment
Design flexible training materials suitable for trainers or subject matter
experts, incorporating practical case studies and/or exercises
Leverage existing education resources where possible
Focus on universal (not company specific) subject matter
9
Methodology
6 step approach used for determining administration skills
and knowledge requirements
Requirements used to develop the education guidelines
Participating Companies:
Manulife Financial Canadian Division (direct)
John Hancock USA (direct)
Hannover Life Reinsurance
RGA US Reinsurance
Scor Reinsurance
Sun Life Reinsurance
Manulife Financial Reinsurance
10
6 Step Approach
1. Define Reinsurance Administration
2. Identify Customer Requirements
3. Identify Skill & Knowledge Requirements
4. Identify Existing Sources
5. Incorporate case studies and hands-on exercises
6. Recommend ‘New Hire’ Reinsurance Administration
Training Guide to RAPA Members
11
Step 1: Define Reinsurance Admin
What’s In What’s Out
• Retention Management • Claims Administration
• Treaty Compliance Process
• Premium, Billings, • Underwriting Process
Payments • Financial/Accounting
• Policy Process (except for
Changes/Terminations accruals)
• Records/Reports • Pricing/Marketing
• Administering Treaty • IS
Terminations • Audit
• Claims Net of Statement • Actuarial
• Legal & Compliance
Develop Industry SIPOC
(Supplier, Input, Process, Output, Customer)
Reinsurance Administration SIPOC Diagram Date Updated: March 4, 2009
Process Boundaries: The Reinsurance Administration process begins when the direct writer seeks reinsurance and ends when the reinsurance is no longer in force.
SUPPLIER INPUT PROCESS OUTPUT CUSTOMER
Direct Writer
Policy Issue Issue NB/Process
Client Send Risk,
Changes/
Retention Revenue &
Preplacement Administer in output
Mgmt force/Process Reserves (NB Risk,
NOS claims & in force) Revenue, & Finance
Changes Valuation
Reserve Report
Finance
Risk & Premium
Variance Valuation
Report Front Office
Cedants
Reinsurer
Indiv
Issue NB/Process Send Risk, Policy Data Valuation
input Record Risk, Changes/ Retention Mgmt
Retention Revenue &
Revenue & Administer in output Front Office
Mgmt force/Process Reserves (NB Transaction
Reserves Operations
NOS claims & in force) Data
Operations:
Performance Sr. Mgmt
Monitoring Mgmt
Risk & Premium
Staff
Retrocessionaire Clients
Requisition &
Cash Mgmt
Issue NB/Process Send Risk, Suspense Entry
Record Risk, Changes/ Operations
input Retention Revenue &
Revenue & Administer in
Mgmt force/Process Reserves (NB
Reserves
NOS claims & in force) AML
Confirmations
Compliance
OFAC Compliance
Step 2: Identify Customer Requirements
Customer Requirements Table – New Business
Process
Process Step Output Requirements Customers
1. Conduct Treaty Reinsurer I need you to ensure reinsurance risk is Operations
Compliance Reporting set up as expected, based on Management
treaty terms
2. Compare Actual Movement Actuary
to Expected Reporting I need to know if/when there may be any
significant client delays in reporting Valuation
3. Manage
Exceptions I require the identification & explanation Finance
of variances
4. Conduct Risk Reinsurer
Management I require Movement Reporting to be
accurate
I require you to ensure New Business is
booked correctly
I require reserves to be set up correctly
Step 3: Identify Skill & Knowledge Requirements
Sub- Triggering Workflow Output/ Skill Knowledge Company Required Training
Process Event (s) Task Deliverable Specific for ‘up Source/
Description Y/N and Program
running
in 3
months’
Conduct New 1) Treaty Info Extract Treaty Using Y Y System
Treaty policies or Parameters System Training
Compliance changes to
policies are
loaded
Compare Variance Treaty Treaty N Y ACLI & CHLIA
various Report Interpretation Parameters Guidelines
parameters
5 Major Categories
1) Understanding Life Insurance
2) Reinsurance Administration
3) What is a Reinsurance Treaty?
4) Reinsurance Pricing & Valuation
5) Administrative Accounting
38 Learning Points within these
5 Categories
Step 4: Identify Existing Sources
100% of content exists in various LOMA
sources
Fragmented: 7 different books, average of
6 different citations/book
Partnered with LOMA to consolidate sources
for ease of administration/cost efficiency
Step 5: Case Studies/Hands-On Exercises
Key requirement for final solution
Step 6: Recommend ‘New Hire’
Reinsurance Administration Training Guide
LOMA: E-Learning
Intro to Life & Health Insurance
5 lessons/6hrs
$90 LOMA Members/$180 Non-Members
Reinsurance Basics
4 lessions/3.25 hrs
$55 LOMA Members/$110 Non-Members
Covers 65% of identified learning points
Working with LOMA to add remaining 35%
Benefits of LOMA E-Learning
Program content: Right level of detail for new
employees; provides examples, exercises, pre-test,
post-test
Cost/Time effective: $145/employee; 9.25 hrs of
training
Ease of use: Online
Long-Term Sustainability: Content Management
Comprehensive: Long-term goal to enhance to include
100% of identified learning points
How to Access Materials
o New section to RAPA Website end of Nov
2009
Provide link to LOMA E-Learning
Post Reference Document – additional learning
points and LOMA source (supplement)
Continue to work with LOMA to update existing
material
What’s Next for the
Education Committee ?
Pilot: Any Volunteers?
Feedback
Enhancements
Assess Needs of RAPA Members
Thank You to the Committee!
• MFC Canadian Division
• Adrian Buchanan
• Sharon Lockwood
• Tina Ozaruk
• John Hancock
• Shaun Downey
• Manulife Reinsurance
• Jill Dupuis
• Pat Paladino
• Sun Life Reinsurance
• Claudia McDaid
• RGA US Reinsurance
• Paula Boswell-Bieir
• Gregg Sharpe
• Hannover Reinsurance
• Jennifer Atlee
• David Ford
• TAI
• John Carroll
• Scor US
• Tom Hartlett
