a method of reducing risk by transferring all or part of an insurance policy to another insurer
Wiktionary Definition for: Reinsurance
Insurance purchased by insurance company insurance companies that spreads the risk associated with selling insurance around so the danger of one large monetary loss is minimized.
The United States reinsurance company market has been, as many experienced reinsurance executives predicted, consolidated down to less than thirty (30) reinsurance companies. This has led to more reinsurance disputes, and the need for additional reinsurance arbitration. Insurance company/reinsurance company professionals must continue to resolve their business disputes via arbitration;...
A finite reinsurance contract is a reinsurance contract by which risk is transferred to the reinsurer, but with risk transfer usually being limited in some way. Generally, finite reinsurance costs less than traditional reinsurance. Finite reinsurance contracts may also differ from other reinsurance products in term and pricing structure. Finite...
The U.S. reinsurance marketplace has undergone significant changes in the last two decades. This report assesses the impact of changes in the reinsurance industry that have taken place over the last twenty years in terms of quality of reinsurance security. In addition, the report examines what steps may be taken...
Reinsurance is a powerful management tool to create shareholder value by reshaping the risk and capital structure of the enterprise. Analyzing the impact of reinsurance on economic value provides much-needed insight to leverage reinsurance decisions to their maximum effect. This insight proposes a framework and approach for the strategic management...
Reinsurance plays a variety of essential roles in the insurance industry. Reinsurance is used to expand underwriting capabilities, provide capital, and boost the credit rating of the ceding company. While not true partners in a legal sense, in a traditional reinsurance transaction the ceding insurer and the re insurer have...
Reinsurance is a transaction in which one insurance company indemnifies, for a premium, another insurance company against all or part of the loss that it may sustain under its policy or policies of insurance. The insurance company purchasing reinsurance is known as the ceding insurer; the company selling reinsurance is...
This paper discusses and provides information about reinsurance. Reinsurance is a transaction in which one insurance company indemnifies, for a premium, another insurance company against all or part of the loss that it may sustain under its policy or policies of insurance. The insurance company purchasing reinsurance is known as...
CHARLOTTE, N.C. & CANNES, FRANCE -- Transamerica Reinsurance, an operating unit of Transamerica Occidental Life Insurance Company TOLIC and part of the AEGON Group since 1999, has established a branch office for its entry into the European life reinsurance market. One of the largest global suppliers of automatic and facultative...
Insurance companies, reinsurance companies, and reinsurance pools will all buy reinsurance. The only additional organizations, which buy reinsurance but do not also sell it, are self-insurers. These organizations buy reinsurance above a SIR (self-insured retention). This article presents and explains different types of reinsurers and different reinsurance distribution channels.
The owner of a captive insurance company lacks the experience of buying reinsurance, especially when they are dealing with the few sophisticated reinsurers that exist in today?s reinsurance market. In the reinsurance buying negotiation process, the captive owner is at a complete disadvantage when dealing with experienced reinsurance company executives....
This paper explains about reinsurance. In the simplest of terms, reinsurance can be described as "insurance for insurance companies." While in a traditional insurance relationship the insured seeks to transfer the risk to an insurance company, the reinsurance relationship takes this risk transfer another step and further transfers it to...
Swiss Reinsurance Co and Munich Reinsurance Co have become the two biggest companies in the reinsurance industry despite having very different strategies. Munich Reinsurance has stuck with a very diversified client list while Swiss Reinsurance has dabbledSwiss Reinsurance Co and Munich Reinsurance Co have become the two biggest companies in...
Proportional reinsurance is often thought to be a very simple method of covering the portfolio of an insurer. Theoreticians have not been particularly interested in analyzing the optimality properties of these types of reinsurance covers. This paper uses a real-life insurance portfolio in order to compare four proportional structures: quota...
Insurance companies have used reinsurance contracts to hedge themselves against losses from catastrophic events. Most commonly used reinsurance contract is excess of loss contract. This paper shows that during the last decade, the high level of worldwide catastrophe losses in terms of frequency and severity had a marked effect on...
Reinsurance affects all public entities. A fully-insured municipality is affected by the reinsurance being purchased by the municipality's primary insurer. A self-insured municipality usually relies upon a reinsurer for catastrophic protection. Finally, a municipality participating in a pool relies upon the pool's reinsurance for protection and cost stability. Thus, public...
The availability of quality reinsurance is becoming an increasing concern for ceding insurers. Many reinsurance companies have suffered a lot of security downgrades which require changing reinsurers in the middle of treaty reinsurance agreements. This article points out and discusses the in such a situation insurers need to be counseled...
This article explains the concerns regarding reinsurance allocation. Reinsurance allocation has emerged recently as a leading area of dispute between reinsurers and their ceding companies. Many of the multi-million dollar coverage actions that insurers settled with their policyholders in the '70's and '80's have led to a second phase of...
One of the most difficult decisions facing a reinsurance purchaser is how much catastrophe cover to buy. Despite having more sophisticated catastrophe models than ever before, many reinsurance buyers find it increasingly difficult to be confident they are making the best decisions. In this situation, though, the reinsurance broker can...
This article focuses on treaty structures and other reinsurance techniques. There are several types of treaty structures. The features, advantages and disadvantages of these types is discussed in this article. The final section of this document discusses other reinsurance techniques including proportional programs, annual aggregate deductible, basket reinsurance, reinsurance pricing...
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