File name: Types of reinsurance with examples pdf
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The cedant pays the full priority of% and a copayment of % of the insurance Engine Insurance (known today as Machinery Breakdown insurance) began in, and both boil-er explosion and engine covers rapidly spread to other industrialised countries different customised reinsurance solution types to the three motivation areas. All those reinsurance solutions involve significant risk transfer, but are customised in a way that allows cedents to target certain specific strategic business needs Treaty Reinsurance Facultative Reinsurance Covers a specific or an individual risk Cession is optional The reinsurer retains the right to accept or reject each risk The one insured/policy is known to the reinsurer at inception Typical uses: Insure unique/hazardous exposures-Insure large exposures It covers the historical origins and the economic importance of reinsurance, the relevant legal bases and the functioning of the various structures, forms and types of reinsurance, with particular reference to the material, temporal and geographical scope of cover and restrictive clauses All those reinsurance solutions involve significant risk transfer, but are customised in a way that the other hand stop-loss reinsurance was being considered, a higher upper limit to the reinsurer's liability would be required for protection of portfolio B than for portfolio AThis manual has been designedTo provide you with an introduction to the world of reinsuranceTo enable you to feel comfortable with, and understand, the core concepts and the principles. The main sections of this manual are as followsThe history of insurance and reinsurance 6 BASIC FORMS AND TYPES OF REINSURANCE Facultative Reinsurance Definition and Key Features Advantages and Disadvantages An example of a Facultative Proportional Reinsurance ArrangementAn example of a Facultative Non-proportional Reinsurance different customised reinsurance solution types to the three motivation areas. The “structure” of reinsurance is used to differentiate between the options for contract The reinsurer pays an amount equal to the full capacity of% of the insurance premium. Traditional reinsurance can be distinguished according to its structure, class and type.
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