As a business owner in Arizona —whether you're based in Tempe , Phoenix , Scottsdale , Tucson , Gilbert , or Chandler —managing risk is a critical part of protecting your assets and ensuring smooth operations. At Riseson Insurance , we’re here to help you navigate specialized insurance solutions, such as Proportional Reinsurance, which is a valuable risk management tool for companies that require robust financial safeguards.

In simple terms, proportional reinsurance is an agreement where an insurance company and a reinsurance provider share risks and premiums. The arrangement is “proportional” because each party takes on a specific percentage of both the risk and the premium from a policyholder’s coverage. This approach helps insurance companies remain financially stable by reducing their exposure, while allowing them to serve more clients and offer larger coverage amounts.

Quota Share Reinsurance: In this model, the insurer and reinsurer share a fixed percentage of all premiums and losses. For example, if a local insurer in Chandler sets a 60% quota share with their reinsurer, they retain 60% of all premiums and losses, with the reinsurer covering the remaining 40%. Surplus Share Reinsurance: Here, the insurer only shares the portion of the policy that exceeds a set limit. If an insurer in Scottsdale decides they can cover claims up to $1 million but wish to reinsure the surplus above that, they may transfer the excess to a reinsurance company. This approach offers flexibility for companies needing scalable coverage options.

Proportional reinsurance allows insurance companies across Arizona, including those in Tempe and Phoenix, to take on larger clients without overextending their resources. By sharing the risk, insurers can increase their underwriting capacity and accept higher premiums from more extensive coverage policies.

With shared responsibilities, insurers can confidently process claims, knowing that a portion of the loss is covered by the reinsurer. This is particularly beneficial for businesses in Tucson and Gilbert, where high-value claims could otherwise strain an insurer's reserves.

By engaging in proportional reinsurance, insurers can offer more comprehensive policies tailored to the needs of growing businesses in Chandler, Gilbert, and beyond. This flexibility can be especially appealing for enterprises that require coverage above standard limits.

For businesses and individuals in Scottsdale, Tucson, and the greater Phoenix area, proportional reinsurance indirectly provides a layer of financial assurance. When your insurer has a proportional reinsurance agreement, you benefit from:

Increased Security: Knowing that your insurer has backup coverage allows for faster and more secure claim payouts. Competitive Premiums: Insurers can manage risks effectively, often allowing them to offer competitive rates and expand coverage options.

As a leading insurance brokerage serving Tempe, Phoenix, Scottsdale, Tucson, Gilbert, and Chandler, Riseson Insurance is well-versed in finding solutions tailored to local businesses and individuals. Our team can help explain complex coverage options like proportional reinsurance, connecting you with the best protection for your unique needs. With our extensive network and commitment to personalized service, Riseson Insurance is your go-to resource for innovative and reliable insurance solutions in Arizona.

For more information on proportional reinsurance or to discuss other insurance solutions, reach out to us at Riseson Insurance at 602-460-5470. Let’s ensure your business is protected and positioned for growth!

What is Proportional Reinsurance?

Types of Proportional Reinsurance

Benefits of Proportional Reinsurance for Local Insurers and Policyholders

1. Financial Stability and Growth

2. Reliable Claim Payments

3. Enhanced Coverage Options for Policyholders

How Proportional Reinsurance Impacts Local Policyholders

Why Choose Riseson Insurance?

1. Quota Share Reinsurance: In this model, the insurer and reinsurer share a fixed percentage of all premiums and losses. For example, if a local insurer in Chandler sets a 60% quota share with their reinsurer, they retain 60% of all premiums and losses, with the reinsurer covering the remaining 40%.
2. Surplus Share Reinsurance: Here, the insurer only shares the portion of the policy that exceeds a set limit. If an insurer in Scottsdale decides they can cover claims up to $1 million but wish to reinsure the surplus above that, they may transfer the excess to a reinsurance company. This approach offers flexibility for companies needing scalable coverage options.

• Increased Security: Knowing that your insurer has backup coverage allows for faster and more secure claim payouts.
• Competitive Premiums: Insurers can manage risks effectively, often allowing them to offer competitive rates and expand coverage options.