K.I.S.S. (Keep It Simple Stupid)

A regional mutual insurance company located in the Southeast had, over time, put unnecessary pressure on its financials by purchasing a complicated, expensive reinsurance structure.  Rather than looking closely at the overall structure and pricing at each renewal, the company just purchased additional reinsurance to cover specific needs.  Atlantic analyzed the historical loss results and exposures of the company and then discussed with management what they wanted to accomplish with the purchase of reinsurance.  After presenting several different new potential structures and discussing the cost/benefits of each, Atlantic was able to prove to management that a more simple, less expensive structure would provide superior coverage to that which they had in place.  Continuity was maintained by keeping several of the supporting reinsurers on the program under the new structure and terms.