The Scholar Re Advantage
As a company with an unwavering focus on public schools and other public-sector risks, Scholar Re is committed to working through turbulent times and shifting market cycles. By definition, our portfolio will not be adjusted to favor unrelated risks. The company’s tax-exempt status also will contribute to its ability to offer attractive participations and potentially, at the discretion of the board, a dividend.
Scholar Re understands that schools and their pools are at the crossroads of many difficult and emerging liability issues, and its goal is to partner with clients through a changing and often volatile marketplace and help them control exposures. Scholar Re will work with Scholar Associates, leveraging its experience in general, automobile, school board professional and umbrella and following-form excess liability to evaluate possible quota share and excess participations, and to assist members with their coverage requirements.
An important element of Scholar Re’s commitment is its board, which includes 10 members, nearly all of whom are practicing school administrators and strong, active supporters of the public school pool risk financing approach. As school officials, board members deal week in and week out with the education demands, budgetary pressures and risk exposures faced by public schools at every level, and appreciate the benefits of patience and a commitment to broad, consistent reinsurance protection over the long haul.
As a demonstration of commitment, the New York Schools Insurance Reciprocal, in addition to authorizing the funding of Scholar Re with $20,000,000 of capital, also ceded to the company a meaningful but measured share of NYSIR’s historically profitable outwards reinsurance program – the umbrella and following-form excess quota share. That program provides Scholar Re with a strong foundation from which to reach out to other school pools, either solely as a reinsurer, or as a reinsurer offering co-investment possibilities.
In existence for more than 20 years, the program also will provide association members with real value-added benefits by offering a wealth of relevant risk management and other information — all grounded in real-world experience.
By virtue of its goals and pedigree, Scholar Re brings to the table a pool mentality regarding school insurance. At its very core, Scholar Re is about schools protecting schools. Consequently, Scholar Re starts with a philosophy that reinsurance terms should permit ceding pools to conduct operations in their own best interest, and in the interst of their reinsurers. The company approaches the claim adjustment process from a distinctly non-adversarial perspective. As part of a long-term relationship, Scholar Re recognizes that program experience, exposures and the quality of pool operations, not market conditions, should be the primary drivers of pricing.