|
|
|
|||||||
|
SIR |
||||||||
|
|
Selected Insurance
Risks - SIR Pool SIR functions as a commercial Property
Reinsurance Pool which is based upon an agreement between the member
companies to share in the premiums and losses and on risks written by all
other participants in the pool. SIR provides capacity at a minimum of cost
and member companies can share in the profits rather than have them go to a
reinsurer. By ceding to the pool, instead of
purchasing reinsurance a member company diversifies its risks, and as a
result may participate in risks that it might not usually. Also, the insureds
of a member company benefit from the combined resources of the pool
companies. Member companies are assigned a percentage of
the pool based upon their percentage of earned premiums in the pool for the
previous year. This percentage is provisional and adjusted at the end of the
year to reflect the member companies' actual earned premium for that year. Member companies report their individual SIR
premiums and losses to MFIA on a monthly bordereau basis. MFIA provides a
medium for handling, servicing, accounting for and settling accounts between
the participating companies for premiums, losses and expenses paid or
incurred in the operation of the pool. In addition to the monthly bordereau
report, information regarding the particulars of the individual policies
ceded are entered in SIR’s database via a website and linked to the
characteristics of the risk extracted from the applicable loss control
survey. This allows MFIA to compile a detailed profile of SIR’s book of
business. MFIA in conjunction with the SIR Pool
Manager also operates a central underwriting facility for the writing of SIR
cessions as follows:
Cessions $500,000 or less with a minimum
company retention of $100,000 are underwritten by the ceding company subject
to monitoring by the SIR Pool Manager. The MFIA Underwriting Committee with the
approval of the member companies formulates SIR Underwriting guidelines. SIR's maximum retention per risk is
$4,000,000 and $6,000,000 for qualifying High-rise fire resistive buildings. |
|
||||||
|
|
Mutual Fire Insurance
Association Of New England Wakefield, MA 01880 |
|
||||||
