What is Bordereaux Management?

What bordereaux management is?

Bordereaux management refers to the process of handling bordereaux, which are reports provided by insurance brokers, coverholders, or managing general agents (MGAs) to insurers or reinsurers. These reports contain critical data about written, premiums, claims, and risk exposures, effectively serving as a summary of insurance transactions for a specific period.

Why is Bordereaux Management Important?

The importance of bordereaux management cannot be understated. It helps insurers and reinsurers maintain a clear understanding of their risk exposure, enabling them to make well-informed underwriting and pricing decisions. In addition, bordereaux management ensures compliance with regulatory requirements and facilitates the accurate calculation of profit commissions and taxes.

Efficient and effective bordereaux management can lead to improved customer satisfaction (Net Promotor Score (NPS)) by reducing delays in claims by processing and enhancing the accuracy of policy documentation in real time.

Key Components of Bordereaux Management comprises of several key aspects, which include:

1. Data Collection: This step involves gathering written, premium, and claims data from various sources, such as brokers, coverholders, or MGAs.
2. Data Validation: Once the data has been collected, it's essential to verify its accuracy and completeness. This step may involve checking for duplicate entries, missing information, or incorrect figures. VIPRs Intrali platform can automate this entire process.
3. Data Analysis and Reporting: Analysing the data helps insurers identify trends, potential risks, and areas for improvement. This process may include assessing loss ratios, identifying patterns in claims, and evaluating the overall performance of a portfolio. Based on the analysis, insurers generate reports that summarise their findings and share this information with relevant stakeholders, such as reinsurers, regulators, and internal teams. VIPR’s Insights platform has over +50 analytical report templates to automate this entire process.
4. Continuous Improvement: Insurers continually refine their bordereaux management processes to increase efficiency, reduce errors, and improve decision-making.

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