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Introduction to Reinsurance
Non-proportional reinsurance
Facultative reinsurance
Treaty reinsurance
Functions of reinsurance
To increase capacity.
Market intelligence.
Advice.
Rating of reinsurance
Regulation of reinsurance
To establish proper incentives.
Economic Stability.
Solvency.
Collectability .
Why do insurance company purchase
reinsurance?
Capacity.
Stability.
Catastrophe protection.
Working of reinsurance
reinsurance
agents
Insurance
Insurance Reinsurance
policyholders
companies companies
brokers
Reinsurance
intermediaries
Indemnity.
Basics of valid reinsurance contract
There must be a transfer of risk from one party to
another,
Re insurance must be between two insurance entities,
The parties must be licensed to be fully recognized by
insurance regulators,
The principle of indemnity should be observed and
All the transactions between a ceding company and a
reinsurer must be conducted on the principle of ‘ut
most good faith’.
Need of reinsurance
Important terms
Admitted reinsurance
Arbitration clause
Burning cost
Catastrophe reinsurance
Cede
Ceding company
Ex gratia payment
Facultative
Reinsurance Arrangement
Quota-share reinsurance
Pro-rata reinsurance
Excess-of-loss reinsurance