Ad
related to: reinsurance contracts examples letters of interest free
Search results
Results from the WOW.Com Content Network
The first contracts of this type were traded in the 1980s. This market remained fairly small (though influential in price setting for reinsurance as these contracts are more consistent than most reinsurance treaties) through Hurricane Katrina. The entry of many hedge funds into the market (for which ILWs are a preferred trading vehicle) along ...
"Additional premium provision" means, in the context of finite risk insurance, a provision of an insurance or reinsurance contract that requires or strongly encourages the insured to pay the insurer some calculable amount as a result of losses paid or incurred under that insurance or reinsurance contract, excluding provisions for additional premium due to changes in exposure or policy audit.
For example, an oil company may desire protection against certain natural hazards, but may only need such protection if oil prices are low, in which case they would purchase a dual trigger derivative or re/insurance contract. There was a great deal of interest in such approaches in the late 1990s, and re/insurers worked to develop combined risk ...
Treaty Reinsurance means that the ceding company and the reinsurer negotiate and execute a reinsurance contract under which the reinsurer covers the specified share of all the insurance policies issued by the ceding company which come within the scope of that contract. The reinsurance contract may obligate the reinsurer to accept reinsurance of ...
A pure 'fin re' contract for a non-life insurer tends to cover a multi-year period, during which the premium is held and invested by the reinsurer. It is returned to the ceding company - minus a pre-determined profit margin for the reinsurer - either when the period has elapsed, or when the ceding company suffers a loss.
A reinsurance policy would allow a second insurer to share in the gain and potential loss of the policy, much like an investor. The secondary insurer would share invested interest and risk. [ 2 ] The reinsurance of policies offers additional risk capital and high returns for the policy originator, and minimizes their liability , while also ...
Reinsurance sidecars, conventionally referred to as "sidecars", are financial structures that are created to allow investors to take on the risk and return of a group of insurance policies (a "book of business") written by an insurer or reinsurer (henceforth re/insurer) and earn the risk and return that arises from that business. A re/insurer ...
For the estimated future claims liabilities, the syndicate bought an RITC; the premium for the reinsurance was equal to the amount of the reserve. In other words, rather than placing the reserve in a bank to earn interest, the syndicate transferred its liabilities for future claims to a reinsurer, thus allowing the year to be closed and the ...
Ad
related to: reinsurance contracts examples letters of interest free