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WHY DO WE NEED REINSURANCE
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Presentation Transcript
General VS Life General Insurance Life Insurance Compensation Agreed Value Long Term Investment Return Relatively fixed pricing • Indemnity • Reinstatement Value • Annual Basis • No Return • Flexible pricing
TYPES OF INSURANCE Tariff • Property • Engineering • Motor • Marine • Miscellaneous • Employee Benefits • Casualty • Liability Tariff
Why Do We Need Reinsurance Scenario 1 : Large Loss
Why Do We Need Reinsurance Scenario 2 : Catastrophic Losses
Reinsurers S & P Ratings
Types of Reinsurance Facultative Arrangement Optional upon both the insurer and reinsurer Reinsurance of a Single Risk Large Sum Insured Risk, High Hazards Risk individually assessed by Reinsurer Terms individually negotiated by Reinsurer Proportionate & Non Proportionate
Types of Reinsurance Treaty Arrangement Agreements between insurer & reinsurer Reinsurance of all the Risks accepted Non Optional, No Advance Notice Risk assessed by the Insurer Terms decided by the Insurer Proportionate : Quota Share, Surplus Non Proportionate : XOL