Which of the following steps are used to determine reinsurance collectability?

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Determining reinsurance collectability requires a holistic view of the credit risk to recoveries. Asking management about any collectability problems uncovers known issues, disputes, or cash-flow concerns that could affect whether recoveries will be paid. Reviewing reinsurer ratings provides an external gauge of the reinsurer’s financial strength and their ability to honor obligations; weaker ratings raise the likelihood that recoveries could be delayed or not paid at all. Examining Schedule F for evidence of regulatory action or paid losses over 90 days past due flags possible solvency concerns and longer collection cycles, signaling increased collection risk.

Using all three sources—internal management insight, external credit ratings, and Schedule F indicators—together gives a fuller, more reliable view of collectability than any single source. This is why the best approach is to consider all of these steps.