Articles on Reinsurance

Benefits of Reinsurance

The concept of reinsurance is fairly simple. When a person takes on insurance, they transfer their risks to the insurance...

Key Differences Between Insurance and Reinsurance

When we define reinsurance, we often say that is a type of insurance for insurance companies themselves. This statement gives...

How Inflation Impacts Reinsurance

The key economic theme which has dominated virtually all of the economic discourse in 2022 has been inflation. Countries around...

Climate Change and Reinsurance

Climate change is a burning issue in 2022. There is not even an iota of doubt that climate change affects...

Catastrophe Modelling: Meaning, Components & Types of Losses

Reinsurance companies have to pay out large sums of money in claims if and when a catastrophe occurs. Each time...

Pros and Cons of Catastrophe Modeling

Catastrophe modeling used to be considered very complex and difficult to use. Just a few decades back, most insurance companies...

Who are Reinsurance Brokers? – Their Compensation and Services

We now know that a reinsurance contract is a contract between an insurance company and a reinsurance company. However, up...

Advantages and Disadvantages of Reinsurance Brokers

In the previous article, we have already seen what reinsurance brokers are and why they are so important to the...

Reinsurance Sidecars

The basic laws of demand and supply work in the reinsurance market just as they work in other markets of...

Pros and Cons of Reinsurance Sidecars

In the previous article, we have already studied about the concept of reinsurance sidecars. We now know what reinsurance sidecars...

What are Reinsurance Pools? and Different Types of Reinsurance Pools

In the previous articles, we have already studied what a catastrophe is and how it impacts the reinsurance market. Catastrophe...

Pros and Cons of Reinsurance Pools

In the previous article, we have already seen how reinsurance pools work. We have also seen how the governments of...

Retrocession – Meaning and its Benefits

We are now aware that reinsurance companies are created especially for taking up risk from other insurance companies. Most people...

Captive Insurance and Reinsurance Companies

There are many new and different types of arrangements that are used in the reinsurance industry. Captive insurance is one...

Fronting in Reinsurance

The reinsurance industry has several complicated terminologies which are routinely used. This is because there are several concepts in the...

Pros and Cons of Fronting in Reinsurance

In the previous article, we have already learned about how fronting works in reinsurance. We now know how different entities...

Reinsurance Policy Coverage

When an individual or a company takes an insurance policy, the risk that they are indemnifying themselves against is very...

Reinsurance Policy Coverage: Advanced Scenarios

In the previous article, we have already seen that the scope of coverage of reinsurance policies can become quite complicated...

Reinsurance and Man-Made Catastrophes

The purpose of reinsurance is to financially help the ceding insurer when they face very high losses which are linked...

Indexation Clause in Reinsurance Policies

A reinsurance contract between a ceding insurer as well as a reinsurer can last for a long period of time....

Benefits and Drawbacks of Indexation Clause in Reinsurance

In the previous article, we have already seen what an indexation clause in reinsurance contracts is. We are now aware...

Loss Occurrence Clause in Reinsurance

Most reinsurance treaties are structured in an excess of loss format. This means that the reinsurer is liable to pay...

Layering Approach in Reinsurance

The business of reinsurance is to provide coverage against catastrophic events which may be caused by the wrath of nature....

Pros and Cons of Layering in Reinsurance

In the previous article, we have already studied the concept of layering and how it related to reinsurance policies. We...

How Reinsurance Premiums are Calculated?

The pricing of reinsurance policies i.e. the calculation of reinsurance premiums is a very complicated topic. The process is quite...

The Burning Cost Approach

In the previous article, we have already seen how reinsurance policies are generally priced and what factors are taken into...

Types of Reinsurance Buyers

Many experts tend to look at reinsurance as a homogenized industry. The idea is that reinsurance companies sell insurance covers...

Homogenous Vs. Heterogenous Bundling in Reinsurance

The insurance industry is a large and diversified industry. It has several different types of products and operates in multiple...

Reinsurance and Foreign Exchange Risks

All insurance companies face foreign exchange risks to some extent. However, all insurance companies are not equally concerned about foreign...

Impact of Artificial Intelligence on the Reinsurance Industry

Technology is the common denominator which generally creates a huge impact on almost all industries. Big data and artificial intelligence...

Reinsurance Vs Securitization

It is common for insurance companies to not hold the entire risk that they underwrite on their own portfolios. Instead,...

Disadvantages of Securitization as an Alternative to Reinsurance

In the previous article, we have already seen what securitization is in the context of reinsurance. We have also seen...

Retention in Reinsurance

The purpose of reinsurance companies is to share risks with insurance companies. This risk-sharing can happen to different degrees. For...

Factors Influencing Retention Ratio In Reinsurance

In the previous article, we have already studied what retention is and why it is important for many insurances as...

Run Off Reinsurance

Under normal circumstances, a reinsurance company operates as a partner with its ceding insurance company. The reinsurance company wants to...

Concept of Reinstatement in Reinsurance

Ceding insurance companies take reinsurance in order to protect themselves from massive losses that may occur when catastrophes occur. The...

Reinsurance Programs – Meaning, Need and its Benefits

In the previous articles, we have already studied about what reinsurance is. However, we have assumed that most ceding insurance...

Factors Governing Reinsurance Programs

Insurance marketplaces are just like other markets. They are full of buyers and sellers i.e. cedant insurance companies as well...

Combining Towers While Building a Reinsurance Portfolio

The reinsurance industry has been largely fragmented till now. This is why it is common for ceding insurers to buy...

Multi-Tower Reinsurance Contracts: Pros and Cons for Reinsurance Companies

In the previous article, we have read about what multi-year reinsurance contracts are. We now know what these unconventional contracts...

How do Insurance Companies Select Reinsurers?

The reinsurance market is very competitive market. After the increase in globalization and privatization, companies from all across the world...

Intra Group Reinsurance

In the previous articles, we have already studied about the concept of reinsurance. However, the reinsurance we have studied is...

Assumption Reinsurance Vs. Indemnity Reinsurance

In the previous few articles, we have studied a lot about reinsurance. We are now aware of the various issues...

Limitations of Reinsurance Contracts

In the previous few articles, we have studied how reinsurance contracts work. We now have a deep understanding of the...

What is Modified Coinsurance and How it Works

A reinsurance contract is essentially a contract between a ceding insurance company as well as a reinsurance company. Under plain...

Accounting for Reinsurance Contracts

Reinsurance contracts tend to be very complicated. As we have already studied in the previous articles, a wide variety of...

Approaches to Reinsurance Regulation

The reinsurance industry is a very important part of the structure of the insurance industry of any country. It is...

Challenges Facing the Regulation of Reinsurance Companies

The reinsurance industry is considered to be very important in most parts of the world. This is the reason that...

How Reinsurance Companies are Taxed?

The coronavirus pandemic has brought the focus on to the operations of the insurance as well as the reinsurance sector....

Overcapacity in the Reinsurance Industry

The reinsurance industry is a highly competitive globalized industry. It faces several challenges from all over the world. The issue...

Cyber Risk in Reinsurance

The global business environment has turned increasingly digital in the pasts few years. It is very common for businesses across...

The Impact of Insurtech on Reinsurance

Traditional reinsurance companies have always made attempts to minimize risks associated with their business. Most reinsurance companies look at themselves...

Courses

Links

Subscribe

Articles on Reinsurance