Mutual Fire Insurance Association of N.E.

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Loss Control Services
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Mutual Fire Association of New England




Selected Insurance Risks - SIR Pool

SIR functions as a commercial Property Reinsurance Pool which is based upon an agreement between the member companies to share in the premiums and losses and on risks written by all other participants in the pool.

SIR provides capacity at a minimum of cost and member companies can share in the profits rather than have them go to a reinsurer.

By ceding to the pool, instead of purchasing reinsurance a member company diversifies its risks, and as a result may participate in risks that it might not usually. Also, the insureds of a member company benefit from the combined resources of the pool companies.

Member companies are assigned a percentage of the pool based upon their percentage of earned premiums in the pool for the previous year. This percentage is provisional and adjusted at the end of the year to reflect the member companies' actual earned premium for that year.

Member companies report their individual SIR premiums and losses to MFIA on a monthly bordereau basis. MFIA provides a medium for handling, servicing, accounting for and settling accounts between the participating companies for premiums, losses and expenses paid or incurred in the operation of the pool. In addition to the monthly bordereau report, information regarding the particulars of the individual policies ceded are entered in SIRís database via a website and linked to the characteristics of the risk extracted from the applicable loss control survey. This allows MFIA to compile a detailed profile of SIRís book of business.

MFIA in conjunction with the SIR Pool Manager also operates a central underwriting facility for the writing of SIR cessions as follows:


over $500,000 with or without a company retention


$500,000 or less with no retention

Cessions $500,000 or less with a minimum company retention of $100,000 are underwritten by the ceding company subject to monitoring by the SIR Pool Manager.

The MFIA Underwriting Committee with the approval of the member companies formulates SIR Underwriting guidelines.

SIR's maximum retention per risk is $4,000,000 and $6,000,000 for qualifying High-rise fire resistive buildings.




Mutual Fire Insurance Association Of New England
500 Edgewater Drive
Suite 580

Wakefield, MA 01880
Telephone (978) 531-7350 or (800) 723-9522
Facsimile (978) 531-2970