NEW YORK, NY--(Marketwire - May 9, 2011) - The Broker & Reinsurance Markets Association (BRMA) is pleased to announce the association has developed a Master Trading Agreement concept that essentially provides one solution for achieving contract certainty.
Contract certainty, or contract completion at inception, has been a central focus in the reinsurance market in the past few years, not only by reinsurance companies, but also by associations and regulators. In spite of efforts to achieve a higher rate of contract certainty, it is still not always possible for reinsurance contracts to be completed by the inception date.
"While great strides have taken place over the past decade in reinsurance contract turnaround time, the BRMA membership felt it could be more proactive and try a new approach," said Pam Parkos, executive director of BRMA. "After much research and discussion, BRMA arrived at the conclusion that this concept for the Master Trading Agreement is the first step in the right direction."
BRMA's Master Trading Agreement focuses on simplifying the contract process through the use of a relationship master agreement which aids in eliminating repetition of multiple clauses in each individual treaty contract. The Master Trading Agreement presents best practices which help organizations with reinsurance treaties achieve contract certainty.
In support of the concept, BRMA is pleased to announce the publication of two papers which focus on defining the Master Trading Agreement, the benefits it offers, and best practices for those seeking to utilize it. These papers, "BRMA: A Contract Certain Product: Principles [and Practice] for the US Broker Reinsurance Market" and "Master Trading Agreement - A Practical Guide," as well as the Master Trading Agreement, are available on the BRMA website at