Start a Reinsurance Brokerage

1. 1

   Understand the placement role

   A reinsurance broker connects the demand for risk capital (MGAs, programs, and fronting carriers who need capacity behind the paper) with the supply (reinsurers). You structure the treaty, market it to reinsurers, negotiate terms, and place the capacity, earning a brokerage commission. You bear no risk yourself; your product is access, structuring, and placement. This is the distinct intermediary layer that makes the capital-light MGA model possible.

2. 2

   Build specialty knowledge and market relationships

   Placing reinsurance requires understanding the risk being ceded and knowing which reinsurers have appetite for it, so specialty expertise and reinsurer relationships are the entire asset. Focus on a class or type of program where you have credibility. Reinsurers commit capacity to brokers who bring well-structured, well-understood risk.

3. 3

   Get the required licensing

   Reinsurance intermediary activity is regulated, and depending on jurisdiction requires reinsurance broker or intermediary licensing and compliance with the relevant insurance regulators. Confirm the specific licensing for the markets you operate in. Treat licensing and the fiduciary duties of an intermediary as part of the setup.

4. 4

   Structure treaties that fit both sides

   Design the reinsurance structure (quota share, excess of loss, or bespoke) so the ceding party gets the capital protection it needs and the reinsurer gets a risk it will accept at a price that clears. Good structuring is where a broker earns its commission. Collateral, terms, and clear wordings protect all parties and your reputation.

5. 5

   Market and place the capacity

   Present the program to reinsurers with clean data and a clear story, negotiate terms, and secure committed capacity, often assembling multiple reinsurers onto one placement. Speed and credibility matter because programs need capacity confirmed before they can write. A clean placement builds the reputation that brings the next mandate.

6. 6

   Service the relationship and grow the book

   Ongoing service (reporting, renewals, and helping resolve issues between cedant and reinsurer) is what earns renewals, which are the recurring revenue of the brokerage. Grow by adding cedant clients and reinsurer relationships across more classes. In reinsurance broking, trust and a track record of sound placements are the whole growth engine.

Do not take our word for the money. Put your own numbers in and see what this idea has to earn before it works. Free, instant, no account needed.