CASE STUDY

Reinsurance Transformation
with an End-to-End Operating Model

Software Development
BFSI

Project Highlights

Scope

  • Designed an end-to-end reinsurance operating model governing how underwritten risks are ceded to reinsurers under defined conditions, rates, and limits.
  • Implemented a structured framework covering underwriting, policy issuance, reinsurance distribution, commission calculation, facultative processes, endorsement management, and accounting integration.
  • Established consistent operational rules to ensure traceable financial flows between insurance policies and reinsurance agreements.

Challenges Overcome

Coordinated multiple reinsurance processes across underwriting, policy administration, and financial reporting environments.

Ensured consistent handling of treaty and facultative reinsurance scenarios without duplication or limit breaches.

Maintained financial traceability and regulatory alignment while supporting complex contract structures and policy changes.

Business Impact

The reinsurance transformation introduced a structured reinsurance framework that improved financial traceability, reduced manual processing, and strengthened governance across treaty and facultative reinsurance operations.

Policy-to-reinsurance allocation time

Manual reconciliation effort in accounting

Facultative placement processing time

Financial traceability across endorsements and commissions

The Client

The client is a prominent financial institution and a key player in the global banking sector. Renowned for its innovative approach to digital banking and customer-centric services, the client offers a wide range of financial products, including retail, corporate, and investment banking.

  • Operates an extensive network of branches and digital platforms, serving millions of customers worldwide.
  • Recognised as a leader in adopting cutting-edge technologies to enhance operational efficiency and customer experience.
  • Committed to sustainability and innovation, driving positive change in the financial industry.
Business professionals in meeting with charts

The Problem

  • The insurer required a comprehensive framework to manage how risks are ceded to reinsurers across treaty and facultative arrangements.
  • Existing processes lacked consistent operational rules for retention, risk distribution, commission structures, and contract versioning.
  • Policy changes and endorsements needed a reliable approach to maintain financial traceability across reinsurance agreements.
  • Accounting integration and reporting required stronger alignment with the underlying reinsurance distribution data.

The Solution

BGTS designed and implemented a comprehensive reinsurance operating model supporting the full lifecycle of risk cession and financial management. The solution introduced versioned treaty management with time-aware contracts and parametric retention models to control risk distribution across reinsurers. Policy-level reinsurance distribution ensured accurate application of retention rules, while commission management supported fixed, tiered, and performance-based structures with auditable calculations. Facultative processes were implemented through structured quote–accept–approve workflows, enabling controlled handling of individual risk placements. Hybrid scenarios were governed by consistency rules preventing double cession and limit breaches across treaty and facultative placements. Endorsement management followed a reverse-and-reproduce approach to maintain complete financial traceability when policies changed. The framework also integrated seamlessly with accounting systems, linking reinsurance distributions with financial records for reporting and compliance.

Team & Technology

Tech Stack Utilised

Backend

  • Java
  • Spring Boot

Frontend

  • Angular
  • TypeScript

Integration

  • REST APIs

Database

  • PostgreSQL

Infrastructure:

  • Docker
  • Kubernetes

Messaging

  • Kafka

Team Composition

1 Architect

4 Full-Stack Developers

2 Business Analysts

1 Tester

The Outcome

Structured reinsurance governance

A consistent operational framework enabled clear management of treaty and facultative reinsurance agreements across the entire policy lifecycle.

Faster operational workflows

Automated processes reduced manual intervention in facultative approvals, commission management, and endorsement handling.

Improved financial transparency

Reinsurance distribution and commission calculations became fully traceable and auditable, strengthening reporting accuracy.

Reliable accounting integration

Seamless linkage between reinsurance distribution and financial systems ensured consistent reporting and improved reconciliation across reinsurance contracts.