With the transfer of a scheme from a ceding insurer, over what period would an underwriter normally require details of the scheme's performance?

An underwriter typically requires details of a scheme's performance over a period of three years, as this timeframe allows for a comprehensive view of the scheme's stability and risk profile. Reviewing three years of performance data enables the underwriter to identify trends, assess the impact of past claims, and evaluate the underlying risk factors that may affect future performance. This period strikes a balance between immediate developments and long-term trends, which is crucial for making informed underwriting decisions.

Furthermore, performance data over three years is often standard in the industry, providing sufficient historical insight to help underwriters gauge the predictability of claims and the overall effectiveness of the scheme, which is vital for pricing, terms, and conditions. In comparison, shorter periods may not offer enough information, and longer periods could lead to complications with changing circumstances that might skew the relevancy of data over time.