Reinsurance auction process

A method of coordinating, by a sponsor, an auction for providing insurance for a cedent by a plurality of insurers, comprising the steps of:

• providing a server system associated with the sponsor, the server system coupled to a database;
• providing a plurality of client systems associated with the cedent and the plurality of insurers, the client systems coupled to the server;
• establishing a network of participating insurers meeting eligibility requirements to participate in said auction;
• establishing an insurance capacity for each of said participating insurers;
• displaying a submission screen on the at least one client system for prompting a cedent to input a request for insurance, the submission screen is stored within the database and is transmitted to the at least one client system, the submission screen including a first section for prompting the cedent to input basic parameters of the request for insurance, and a second section for prompting the cedent to respond to questions and attach documents for underwriting the insurance associated with the request;
• receiving at the server said request for insurance from the cedent;
• performing by the sponsor an underwriting analysis of said request for insurance and producing by the sponsor an underwriting report including an analysis of risk of loss associated with said insurance, wherein the risk of loss analysis includes an amount of losses expected on said insurance over a predetermined period of time, wherein the underwriting analysis includes the sponsor determining a single underwriting standard for analyzing said request for insurance and producing the underwriting report;
• making said request for insurance and said underwriting report available to said participating insurers and enabling said participating insurers to make respective bids, during a selected period, to cover a portion of said insurance, each bid to include a maximum percentage of insurance offered by said participating insurer and a rate specified by said participating insurer;
• submitting said bids using the at least one client system by each of the participating insurers after said request for insurance and said underwriting report have been made available to the participating insurers;
• receiving said bids at the server from said participating insurers during said selected period;
• selecting said bids by the sponsor which fulfill said request for insurance, as an insurance proposal;
• and
• offering said insurance proposal to said cedent.

A process for coordinating, by a sponsor, an auction for providing insurance for a cedent by a plurality of insurers, the process using a computer associated with the sponsor coupled to a remote computer, said process comprising the steps of:

• establishing a network of participating insurers meeting eligibility requirements to participate in said auction;
• establishing an insurance capacity for each of said participating insurers;
• displaying a submission screen on the remote computer for prompting a cedent to input a request for insurance, the submission screen is stored at the sponsor computer and is transmitted to the remote computer, the submission screen including a first section for prompting the cedent to input basic parameters of the request for insurance, and a second section for prompting the cedent to respond to questions and attach documents for underwriting the insurance associated with the request;
• receiving at the sponsor computer said request for insurance from the cedent;
• performing an underwriting analysis of said request for insurance by the sponsor, wherein the underwriting analysis includes the sponsor determining a single underwriting standard for analyzing said request for insurance;
• producing an underwriting report including an analysis of risk of loss associated with said insurance program, wherein the risk of loss analysis includes an amount of losses expected on the insurance program over a predetermined period of time;
• making said request for insurance and said underwriting report available to said participating insurers and enabling said participating insurers to make respective bids, during a selected period, to cover a portion of said insurance, each bid to include a maximum percentage of insurance offered by said participating insurer and a rate specified by said participating insurer;
• submitting said bids using the remote computer by each of the participating insurers after said request for insurance and said underwriting report have been made available to the participating insurers;
• receiving said bids from said participating insurers during said selection period;
• selecting said bids which fulfill said request for insurance, as an insurance proposal;
• offering said insurance proposal to said cedent;
• binding said selected participating insurers to provide said insurance;
• and
• guaranteeing, by said sponsor, payment by each of said selected participating insurers for any proper claims made on said insurance.

A process for coordinating, by a sponsor, an auction for providing reinsurance for a cedent by a plurality of insurers, the process using a computer associated with the sponsor coupled to a plurality of remote computers, said process comprising the steps of:

• establishing a network of participating reinsurers meeting eligibility requirements to participate in said auction;
• establishing a reinsurance capacity for each of said participating reinsurers;
• displaying a submission screen on at least one of the remote computers for prompting a cedent to input a request for reinsurance, the submission screen is stored at the sponsor computer and is transmitted to the remote computer, the submission screen including a first section for prompting the cedent to input basic parameters of the request for reinsurance, and a second section for prompting the cedent to respond to questions and attach documents for underwriting the reinsurance associated with the request;
• receiving at the sponsor computer said request for reinsurance from the cedent;
• performing an underwriting analysis of said request for reinsurance by the sponsor wherein the underwriting analysis includes the sponsor determining a single underwriting standard for analyzing said request for reinsurance and producing the underwriting report;
• producing, by the sponsor, an underwriting report including an analysis of risk of loss associated with said reinsurance program, wherein the risk of loss analysis includes an amount of losses expected on said reinsurance program over a predetermined period of time;
• making said request for reinsurance and said underwriting report available to said participating reinsurers and enabling said participating reinsurers to make respective bids, during a selected period, to cover a portion of said reinsurance;
• submitting bids using at least one of the remote computers by each of the participating reinsurers after said request for reinsurance and said underwriting report have been made available to the participating reinsurers, each bid to include a maximum percentage of reinsurance offered by said participating reinsurer and a rate specified by said participating reinsurer;
• receiving said bids from said participating reinsurers during said selected period;
• selecting said bids which fulfill said request for reinsurance, as a reinsurance proposal;
• offering said reinsurance proposal to said cedent;
• binding said selected participating reinsurers to provide said reinsurance;
• and
• guaranteeing, by said sponsor, payment by each of said selected participating reinsurers for any proper claims made on said reinsurance.