Automated Reinsurance Reporting Compliance: Data Extraction Across Treaties for the Accounting Manager

For Accounting Managers in Property & Homeowners, Specialty Lines & Marine, and Auto, reinsurance reporting is an unforgiving, deadline-driven maze. Each quarter, you reconcile premium and loss bordereaux against contract-specific rules, translate treaty wording into cash calls and ceding commissions, and defend every number in audits with page-level evidence. The challenge: treaties and endorsements are inconsistent, bordereaux formats change by market, and reporting obligations differ for every reinsurer. The result: manual rework, reconciliation delays, and compliance risk.

Doc Chat by Nomad Data was built to eliminate this friction. It reads entire reinsurance contracts and their addenda, ingests premium and loss bordereaux, cross-checks against policy and claim source systems, and produces standardized, audit-ready reinsurance statements on time, every time. Doc Chat automates reinsurance reporting compliance by extracting and standardizing data across treaties, giving Accounting Managers real-time answers to complex questions like “Which Property treaties require swing-rated commission this quarter?” or “Calculate reinstatement premium owed by cat layer by event.”

Why reinsurance reporting is different: the Accounting Manager’s reality across Property, Specialty & Marine, and Auto

Unlike standard payables and receivables, reinsurance accounting is governed by idiosyncratic treaty terms that drive bespoke calculations. In Property & Homeowners, catastrophe XL layers carry hours clauses, occurrences, reinstatement provisions, and event-based recoveries. In Specialty Lines & Marine, facultative certificates and open cargo covers add voyage- and peril-specific nuances alongside premium deposits and premium adjustables. In Auto, proportional quota share agreements may include ceding commission ladders, loss participation, salvage/subrogation treatment, and claims-made vs. occurrence nuances across jurisdictions. For Accounting Managers, all three lines of business demand contract-by-contract interpretation and precise mapping of those interpretations into cash and ledger entries.

The problem compounds because the content that drives accounting lives in documents: reinsurance treaties, contract wordings, cover notes, addenda, broker slips, Statement of Account templates, premium and loss bordereaux, claim advice notes, FNOL forms, ISO claim reports, loss run reports, and post-bind endorsements. Every treaty can redefine the meaning of “occurrence,” “loss corridor,” “aggregate deductible,” or “subject premium,” and those definitions cascade into quarterly statements, recoverable balances, and audit trails. Accounting Managers are responsible for translating these words into numbers that withstand scrutiny from reinsurers, cedents, internal controllers, and regulators.

Line-of-business nuances that drive complexity

Property & Homeowners introduces catastrophe-driven volatility and highly negotiated clauses. Specialty Lines & Marine adds global and maritime regulations, voyage warranties, and valuation rules for partial losses. Auto adds jurisdiction-specific loss adjustment expenses, med pay, PIP, BI/PD allocations, and frequency-driven bordereaux summarization. All three require precision on common but tricky questions: who pays reinstatement? Is LAE inside or outside limits? How are salvage and subrogation netted? What’s the minimum and deposit (M&D) premium and how does the swing apply? Which period does a claim belong to under the treaty’s occurrence definition? These answers are buried in documents that change every year.

How the process is handled manually today

Most reinsurance accounting teams still rely on spreadsheets, email, and manual reading of treaty PDFs. The workflow typically looks like this:

• Collect quarterly premium and loss bordereaux (multiple formats) from underwriting and claims systems, plus broker packages with Statements of Account templates.
• Open the latest treaty wording and endorsements to identify applicable terms: ceding commission (fixed or sliding scale), loss corridor, profit commission, M&D premium, swing-rated terms, event definition, LAE treatment, taxes/brokerage, set-off rights, and settlement timing.
• Hand-map each treaty’s required fields to columns in the incoming bordereaux. Where columns don’t exist, create manual derivations (e.g., subject premium, recoverable net of salvage, claim per occurrence and per event).
• Calculate reinstatement premiums for Property catastrophe layers, often referencing event tags and hours clauses from claims teams.
• Reconcile loss run reports and ISO claim reports with claims bordereaux to confirm paid vs. incurred, ALAE vs. ULAE, reserves, and development by accident period.
• Trace variances back to FNOL forms, adjuster notes, and claim memos to validate occurrence mapping and coverage attachment.
• Draft SOAs and cash calls, attach exhibits, and email to brokers/reinsurers; then chase confirmations and post GL entries.
• Prepare defensible documentation for auditors and reinsurers, including page citations to treaty sections and exact row references for every calculation.

This manual approach is slow, brittle, and risky. It depends on individual institutional knowledge—who “knows” the cat layers’ occurrence definitions, or how a specific Marine endorsement treats sue and labor? When people change roles, knowledge evaporates, and the next quarter starts from scratch. Worse, when premium or loss formats change mid-year (a common broker occurrence), the spreadsheet logic breaks. Reinsurance reporting compliance becomes a scramble.

What changes with reinsurance reporting compliance automation

Doc Chat replaces fragmented manual work with a single automated pipeline that reads, extracts, validates, and explains. It brings the rigor of a seasoned reinsurance accounting analyst to every treaty and every bordereau—at scale.

AI to extract data from reinsurance treaties

Doc Chat ingests the full treaty file—slips, cover notes, contract wordings, schedules, addenda, and endorsements—then extracts the exact parameters your accounting needs to calculate quarterly settlements. Examples include:

• Commission terms: fixed, sliding scale, swing-related, loss participation, profit commission, brokerage, and tax treatment.
• Premium mechanics: minimum and deposit (M&D), adjustable rates, subject premium definitions, inception/expiry rules, cancellation clauses, and set-off.
• Loss settlement terms: ALAE/ULAE handling, salvage/subrogation netting, occurrence/claims-made trigger, hours clauses, aggregates, deductibles, and corridors.
• Reinstatements: paid/unpaid, how calculated, by occurrence, per event, per layer.
• Reporting obligations: frequency, format, currency conversion, bordereaux field requirements, and documentation standards.

Because Doc Chat was designed for complex, unstructured documents, it doesn’t break when format or language varies. It finds trigger language wherever it hides and presents structured, reusable parameters that downstream calculations can trust. For a deeper dive on why this goes far beyond simple OCR, see Nomad’s perspective in Beyond Extraction: Why Document Scraping Isn’t Just Web Scraping for PDFs.

Automated bordereaux reporting insurance

Doc Chat ingests premium, risk, and loss bordereaux from multiple sources—brokers, cedents, internal systems—and normalizes them to the exact treaty-required layout. It detects missing fields and prompts for enrichment (e.g., event IDs for cat claims, peril codes for Marine cargo, coverage codes for Auto BI/PD). Then it performs treaty-specific calculations:

• Computes ceding commission (fixed or sliding scale), profit commission accruals, and loss participation adjustments.
• Calculates reinstatement premiums by event, by layer, respecting hours clauses and occurrence definitions.
• Nets salvage and subrogation per contract terms, separates ALAE/ULAE, and allocates LAE inside/outside limits as specified.
• Generates Statement of Accounts (SOAs), cash call packages, and posting-ready journals with reference back to source rows and treaty pages.

The result is true reinsurance reporting compliance automation: consistent templates, complete documentation, and cycle times that shrink from weeks to hours.

How Doc Chat works for the Accounting Manager

Doc Chat is a suite of purpose-built, AI-powered agents tuned to your reinsurance accounting playbook. It ingests thousands of pages per claim file, policy schedule, or treaty pack, and processes millions of rows of bordereaux without adding headcount. The Accounting Manager can ask questions in plain English—“Show all treaties across Property & Homeowners with sliding scale commission this quarter”—and get instant, citation-backed answers across every document in scope.

Under the hood, Doc Chat performs:

1. Document normalization and classification: Recognizes treaty types (quota share, surplus share, per risk XL, cat XL, facultative), bordereau varieties (premium, risk, loss), and supporting artifacts (loss run reports, ISO claim reports, FNOL forms, claims memos, policy schedules, Statement of Values).
2. Entity and concept extraction: Pulls out key treaty parameters (limits, attachment points, ceding commission rules, hours clauses, reinstatement terms, reporting SLAs, set-off language, taxes/brokerage).
3. Rule application: Applies your accounting policies to calculate ceding commission, profit commission, loss participation, reinstatement premiums, M&D adjustments, and cash calls.
4. Cross-checks and reconciliations: Reconciles bordereaux to GL and subledger totals, ties loss runs and claims data back to ISO and FNOL intake, and validates event tagging for cat reinsurance.
5. Audit trails and explainability: Every number links to the treaty clause and the exact rows used in calculation, supporting reinsurer queries, broker validations, and internal audit with confidence.

This is not generic summarization. As highlighted in our client story, Reimagining Insurance Claims Management: GAIG Accelerates Complex Claims with AI, Nomad’s approach is built for high-stakes, page-cited accuracy at scale.

What gets automated, specifically

Across Property & Homeowners, Specialty Lines & Marine, and Auto, Doc Chat automates:

• Contract term extraction from reinsurance treaties and addenda: ceding commissions, brokerage, taxes, set-off, profit commission, swing-rated mechanics, loss corridors, ALAE/ULAE, hours clauses, and reinstatements.
• Bordereaux normalization: converts broker- or cedent-specific premium, risk, and loss files into a single canonical schema mapped to each treaty’s reporting obligations.
• Calculation engines: computes quarter-to-date and year-to-date amounts, including commission adjustments, cash call triggers, and reinstatement premiums by event and layer.
• Evidence packages: produces SOAs, exhibits, and workpapers with embedded page citations and row references to meet reinsurer requests and audit requirements.
• Variance analysis: flags anomalies (e.g., sudden shifts in Auto BI/PD ratios, out-of-pattern Marine cargo partial losses, Property cat events misaligned with hours clauses) and explains drivers.

Because Doc Chat supports real-time Q&A, Accounting Managers can pivot from month-end close to ad hoc queries instantly: “Which Specialty & Marine facultative certificates include sue and labor inside limits?” or “List all Auto quota share treaties where ALAE is inside the limit and LAE exceeds 15% of paid losses this quarter.” Answers come with citations and can be exported into your statement files or subledgers.

The business impact for Accounting Managers

Automating reinsurance reporting compliance and bordereaux handling drives material improvements in speed, cost, and accuracy:

Time savings. Doc Chat moves treaty-to-statement processing from days to minutes. Entire treaty packs and quarterly/annual reinsurance reporting bundles can be ingested and computed in a fraction of the time it takes a manual team. Large Property catastrophe events that once consumed a close cycle are now summarized instantly with event-level reinstatement math already done.

Cost reduction. Manual touchpoints—data entry, reconciliation, calculation, and evidence compilation—shrink dramatically. One Accounting Manager can oversee multiples of the prior volume across Property & Homeowners, Specialty & Marine, and Auto without additional headcount. For broader context on the ROI of document automation, explore AI's Untapped Goldmine: Automating Data Entry.

Accuracy and defensibility. Human accuracy tends to decline after long hours and large page counts. Doc Chat reads page 1,500 with the same focus as page 1, and every result is backed by a page-level citation. This boosts negotiation leverage with reinsurers and reduces disputes, leakage, and write-offs.

Scalability. Seasonal spikes—hurricane season for Property, catastrophe clusters for Marine cargo, hail/freeze events driving Auto physical damage—no longer force overtime or temporary staffing. Doc Chat scales instantly, meeting surge demands with consistent quality.

Institutionalized knowledge. Your best practices and nuanced judgment become standardized, reducing desk-to-desk variability and onboarding time for new analysts. For more on codifying unwritten rules, see Beyond Extraction.

Examples of questions Doc Chat answers in seconds

Accounting Managers can ask dynamic questions across their entire document corpus and get immediate, source-cited answers:

• “List every Auto quota share with sliding scale commission and calculate the current quarter’s commission by treaty.”
• “For Property & Homeowners cat layers, calculate reinstatement premiums by event for Q3 and show the hours clause citations.”
• “Identify Specialty Lines & Marine treaties requiring quarterly bordereaux in GBP and produce the converted SOAs in USD with FX rates and references.”
• “Which treaties classify ALAE outside limits, and what are the implications on current recoverables?”
• “Show cash calls triggered this quarter by corridor thresholds and attach the underlying loss bordereaux rows.”

These are the everyday obstacles that slow reinsurance reporting. Doc Chat turns them into quick prompts.

Documents Doc Chat processes for reinsurance accounting

To support Accounting Managers end-to-end, Doc Chat reads across the full reinsurance data landscape:

• Reinsurance treaties, slips, contract wordings, endorsements, addenda, and cover notes.
• Premium, risk, and loss bordereaux; broker SOA templates; cash call letters; recovery schedules.
• Loss run reports, claim memos, ISO claim reports, FNOL forms, adjuster notes, subrogation/salvage statements.
• Policy schedules, Statement of Values (SOV), catastrophe model outputs, and event tagging logs.
• Quarterly/annual reinsurance reporting packs, reinsurer query logs, and audit workpapers.

Doc Chat is built for messy, multi-format reality. It can ingest entire claim files and treaty libraries—thousands of pages at a time—ensure completeness, and generate standardized outputs aligned to your reporting calendar.

From manual to automated: a day-in-the-life transformation

Before: You start the quarter close by hunting for the final endorsed wording on a Property catastrophe treaty. You massaged three different bordereaux formats into a single worksheet, tweaked commission ladders based on last year’s version, and discovered—late in the process—that the hours clause changed in an endorsement two months ago. You rework reinstatement calculations, reconcile claims lines to loss runs, and assemble a binder of screenshots to defend your numbers in broker calls.

After (with Doc Chat): The latest treaty, endorsements, and broker slip are already ingested. When loss bordereaux arrive, Doc Chat validates fields and normalizes formats, flags missing event IDs, and auto-calculates reinstatement premiums according to the exact clause in the endorsement—citing the page, paragraph, and line. It generates your SOA and cash call pack, posts draft journals with clear GL mapping rules, and creates a one-click evidence package for reinsurers and auditors. You spend your time reviewing variances and making strategic decisions—not reconciling columns.

Why Nomad Data is the best partner for Accounting Managers

Doc Chat isn’t a one-size-fits-all OCR tool. It’s an enterprise-grade, insurance-specific solution delivered as a white glove service. Here’s what makes it different:

• Built for complexity. Exclusions, endorsements, trigger language, and settlement terms often hide in dense, inconsistent wording. Doc Chat finds them, applies them, and explains them.
• The Nomad Process. We train Doc Chat on your playbooks, documents, and standards—your commission ladders, your occurrence rules, your GL mapping—so it mirrors how your team works.
• Real-time Q&A. Ask “Which treaties require Automated bordereaux reporting insurance in a specific format?” and get answers instantly across every file in scope.
• Thorough and complete. Doc Chat surfaces every reference to coverage, liability, damages, or settlement obligations, eliminating blind spots and leakage.
• Security and governance. Nomad is SOC 2 Type 2, with document-level traceability and page-level explainability built in. Outputs are defensible to reinsurers, auditors, and regulators.
• Fast value: 1–2 week implementation. Our white glove team deploys Doc Chat in as little as one to two weeks, integrating with your systems as needed and delivering immediate ROI.

For a look at how insurers adopt and trust our platform in complex settings, read GAIG’s journey to AI-enabled claims and our broader perspective in Reimagining Claims Processing Through AI Transformation.

Implementation in 1–2 weeks: what it looks like

Nomad’s white glove approach removes the burden from your Accounting Manager and IT teams:

1. Discovery (Days 1–3). We review a representative set of treaties and bordereaux across Property & Homeowners, Specialty & Marine, and Auto. We capture your reinsurance accounting playbook and GL mapping rules.
2. Preset and schema setup (Days 2–5). We configure extraction presets for treaty terms, define canonical bordereaux schemas, and align output formats to your SOA templates and journal entry requirements.
3. Validation (Days 5–8). We run historical quarters, compare to your results, adjust rules for edge cases (e.g., unique Marine sue & labor treatments, Auto LAE allocations, Property hours-clause nuances).
4. Go-live (Days 8–14). We enable your Accounting Manager’s team with secure access, train power users, and set SLAs for quarter-close support. Optional API-level integration to reinsurance admin or GL systems follows without blocking go-live.

Teams often begin by dragging and dropping treaty packs and bordereaux to experience immediate results. Integration can be phased in later, allowing you to realize benefits immediately without a long IT project.

Compliance and audit readiness out of the box

Reinsurance reporting obligations stretch beyond sending an SOA. You must be ready for reinsurer queries, internal audit reviews, broker challenges, and regulatory examinations. Doc Chat creates a living audit trail:

• Every number points to source: treaty page, paragraph, line; bordereaux row and file; claim memo reference; loss run row.
• Automated variance narratives explain commission, loss participation, and reinstatement drivers quarter-over-quarter.
• Exportable evidence packs speed reinsurer responses and shorten audit cycles.

This defendability is why teams trust Doc Chat for high-stakes reporting. For parallels in medical file review and why explainability matters at scale, see The End of Medical File Review Bottlenecks.

Addressing common concerns from Accounting Managers

“Our treaty library is inconsistent and the wording is unique.” That’s exactly what Doc Chat was designed for. It thrives on variability and is trained on your documents and workflows.

“What about sensitive data and privacy?” Nomad Data adheres to strict security practices, with SOC 2 Type 2 controls. We provide document-level traceability and never train foundation models on your data by default.

“We’ve tried OCR before; it didn’t help.” Doc Chat isn’t OCR. It’s a reasoning engine that extracts concepts, applies rules, and calculates outcomes with citations. Learn why the difference matters in Beyond Extraction.

“Our quarters are too tight to implement new tech.” That’s why we deliver results in 1–2 weeks and start with drag-and-drop usage before integration. You’ll see value this quarter, not next year.

Key use cases mapped to the three lines of business

Property & Homeowners

Focus: catastrophe XL layers, reinstatement premiums, event mapping, hours clauses, aggregate deductibles, and set-off. Doc Chat computes reinstatements by event, aligns hours-clause logic with claims event tags, and produces cash call packages with page-level treaty citations. It reconciles loss bordereaux to loss runs and ISO claim reports, ensuring accurate LAE treatment and salvage/subrogation netting.

Specialty Lines & Marine

Focus: facultative certificates, open covers, voyage-specific terms, sue & labor, partial loss valuations, and cargo perils. Doc Chat extracts voyage/peril clauses, validates coverage triggers, applies premium adjustables and M&D premium rules, and generates treaty-compliant bordereaux and SOAs. It flags unusual partial loss patterns and aligns sub-limits with settlement amounts.

Auto

Focus: quota share commissions (sliding scale, loss participation), BI/PD/PIP/MED allocations, ALAE/ULAE handling, and claim frequency impacts on premium and loss bordereaux. Doc Chat normalizes bordereaux across states and carriers, calculates ceding commissions, and reconciles against loss run reports and FNOL-derived claim counts. It spots anomalies in severity/frequency trends and explains variances quarter-over-quarter.

Metrics that matter

Across insurance organizations, we consistently see:

• 50–90% reduction in quarterly reinsurance close time, particularly in Property cat and high-volume Auto quota shares.
• 30–60% reduction in reinsurance accounting operating costs via automated data extraction, calculation, and evidence packaging.
• Substantial accuracy lift, especially on large, multi-endorsement treaties where human fatigue is a factor.
• Audit and reinsurer query cycles shortened from weeks to days because every number is page-cited and row-referenced.

These improvements mirror what insurers report in adjacent document-heavy workflows. For broader benchmarks and outcomes, see Reimagining Claims Processing Through AI Transformation.

High-intent solutions woven into your workflows

We intentionally align Doc Chat to the most common search intents from Accounting Managers:

• Reinsurance reporting compliance automation: End-to-end extraction, calculation, reconciliation, and evidence generation for treaty-driven statements.
• AI to extract data from reinsurance treaties: Contract term extraction that translates wording into structured, ready-to-use calculation parameters with page-level citations.
• Automated bordereaux reporting insurance: Multi-source normalization and treaty-specific formatting, complete with data quality checks and variance explanations.

Integration without disruption

Doc Chat delivers value on day one via secure drag-and-drop uploads. As adoption grows, we can integrate with reinsurance administration and accounting platforms, data warehouses, and GL systems via modern APIs—without interrupting quarter-end. Many Accounting Managers prefer a phased approach: immediate automation for the current close, followed by deeper system connectivity in the following weeks.

A quick illustrative scenario

Midway through Q2, a Property & Homeowners cat event drives a spike in losses. Your claims team tags events and updates loss bordereaux. Using Doc Chat, you ingest the new files. It applies treaty-specific hours clauses and calculates reinstatement premiums by layer and event, net of salvage/subrogation, with ALAE outside the limit per the endorsement. It prepares a cash call package, complete with treaty references, and posts draft JE files for your GL. Meanwhile, for your Auto book, Doc Chat notices BI severity upticks and explains how the sliding scale commission shifts for two quota share treaties, attributing changes to loss participation terms and development on prior accident periods. Your Specialty & Marine treaties receive updated cargo partial losses; Doc Chat validates sue & labor treatment and alerts you to a voyage-specific sub-limit that caps recovery—defended with a clean page citation. The quarter closes on time, with fewer meetings and zero last-minute spreadsheet surgery.

Make reinsurance reporting your fastest, most defensible close

Reinsurance accounting doesn’t have to be the fire drill of every quarter. With Doc Chat for Insurance, Accounting Managers in Property & Homeowners, Specialty Lines & Marine, and Auto replace manual reading, spreadsheet patchwork, and reconciliation fatigue with an automated, explanation-first workflow. It’s reinsurance reporting compliance automation designed for the realities of treaty variability and bordereaux chaos—deployed in 1–2 weeks with white glove service and backed by page-level proof for every number.

If you’re ready to standardize and accelerate quarterly/annual reinsurance reporting, cut costs, and improve accuracy—while making your audit binders a click instead of a weekend—let’s talk. Doc Chat turns the documents you dread into the answers you need.