Modeling ~ Mystic can assist in projecting the financial flows of a proposed reinsurance transaction. Our actuaries can test the reinsurance under various scenarios. These tests will demonstrate that the treaty will be in compliance with “transfer of risk” regulation issues. But most importantly ceder and reinsurer will have clear understanding of the expected results at the onset of the treaty.

Treaty Reviews ~ would encompass the review of any current or proposed treaty for accuracy in fairly representing the intentions of the parties, compliance with current or proposed State Regulations, inclusion of all reasonable and necessary protections and their enforceability, and then recommendations and negotiations of such changes when needed.

Accounting Reviews ~ for a treaty that’s already in place Mystic would review the actual accounting reports and numbers passed between the parties. The purpose of this review is two-fold. First, to determine that the accounting practices adopted by the parties are accurately reflected in the treaty, and secondly, to verify that the treaty’s “mechanics” are correct. We will note any unusual or irregular occurrences in the accounting that may indicate the need for a more expansive audit protocol.

Financial Analysis ~ would encompass any projection of an existing treaty under various scenarios. Based on the reinsured policies’ past experience and employing accepted actuarial principals, our actuaries are capable of producing any number of models to demonstrate the effects of a given set of actions. For example, what are the effect of terminating a treaty for new business or the effects of an immediate recapture.

On-Site Audits ~ recommends annually the complete verification of the ceder’s reporting to the reinsurer by examination of the books, records and papers of the ceder. Mystic would review and verify the methodology as well as the results of key items such as reserves, underlying claim payments, accounting procedures and the computer systems that generate the reinsurance reports.

Arbitration ~ unfortunately, sometimes reinsurer and ceder are unable to resolve disputed issues among themselves and as a last resort a treaty will end up in arbitration. Mystic is well qualified to be your resource as either an arbitrator or an expert witness.

Summary ~ Mystic can assist you whether your organization acts as ceder or reinsurer. With Mystic’s support you can be assured that you will have a firm grasp of any life reinsurance treaty or reinsurance program for which you are responsible. With the rapid promulgation of reinsurance regulation over the past few years, our due diligence process is a must addition. In today's evolving reinsurance environment, uncovering any error or omission in your reinsurance, earlier rather than later, can spell the difference between an amicable resolvement and arbitration.