European Cedent Increases Treaty Renewals 2.8x with AI Pricing
Major European cedent scales treaty renewal capacity from 40 to 112 renewals annually through AI-powered pricing automation, capturing $3.2M in additional premium with same team size.
Company Size
$2.1B Premium
Focus Areas
Treaty Pricing
Timeline
16 Weeks
The Challenge
This European cedent managed a complex portfolio requiring 120+ treaty renewals annually, but could effectively process only 40 due to bandwidth constraints:
40
Renewals processed annually
80 hours
Average per treaty analysis
5.2 FTE
Actuaries/pricing specialists
Key Pain Points:
- • Limited to analyzing 40 of 120+ required renewals annually
- • 80 hours per treaty analysis limited scenario modeling (2-3 scenarios only)
- • Market opportunities missed due to capacity constraints
- • Unable to expand pricing to non-renewal placements
The Solution
Implemented AI-powered treaty pricing and analysis platform to automate routine analysis and scenario modeling:
Week 1-3: Assessment & Model Development
Audited 30 historical treaties, identified pricing rules and structure preferences, and built AI pricing models trained on organization's historical data.
Week 4-6: System Integration
Connected AI to loss history database, underwriting systems, and market data feeds. Configured automated historical loss analysis and scenario generation.
Week 7-12: Pilot & Calibration
Deployed on 15 live treaty renewals. Compared AI recommendations to manual analysis—validated accuracy and recalibrated models. Achieved 94% agreement with manual pricing.
Week 13-16: Full Deployment
Extended AI analysis to all renewal opportunity sets. Team transitioned to using AI recommendations as starting point, focusing on exceptions and strategic scenarios.
Quantified Results
Capacity & Throughput
Annual Renewals Processed
40
→
112
2.8x increase, 180% capacity gain
Analysis Time per Treaty
80 hours
→
12 hours
85% time reduction
Pricing Scenarios per Treaty
2-3
→
12-15
5-6x more scenario analysis
Team Headcount
5.2 FTE
→
5.2 FTE
Same capacity, 2.8x output
Financial Impact (Year 1)
Additional Premium Opportunities (72 new renewals)
+$3,200,000
Premium at 4% margin improvement
+$128,000
Reduced underpricing (better analysis)
+$185,000
AI Platform & Implementation Cost
-$120,000
Total Year 1 Benefit
+$3,393,000
Strategic Impact
Competitive Positioning
Now capable of responding to all 120+ renewal opportunities annually. Improved market responsiveness and competitive positioning strengthened cedent relationships.
Team Productivity
Team elevated from tactical execution to strategic analysis. Actuaries now evaluate AI recommendations and focus on complex, judgment-based decisions.
Pricing Quality
More scenarios analyzed per treaty and consistent methodology improved pricing quality and reduced underpricing across portfolio.
Key Success Factors
- 1.
Historical data training: Training AI on 30 historical treaties enabled accurate modeling of organization's pricing preferences and market philosophy.
- 2.
Clear success metrics: Focusing on capacity increase rather than cost reduction made value clear to all stakeholders—more business, same cost.
- 3.
Team support: Framing AI as tool to extend team capacity (not replace) reduced adoption friction and built team buy-in quickly.
- 4.
Scenario depth: Demonstrating 5-6x more scenario analysis per treaty proved competitive advantage—better analysis = better pricing = higher margins.
Ready to Scale Treaty Capacity?
Let's discuss how AI pricing automation can increase your renewal throughput 2-3x.
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