4. Parties in
reinsurance
Ceding Insurer/Cedant -
the co., which is purchasing
the reinsurance (reinsured).
Assumed Insurer - the co.,
which is selling the
reinsurance to another co.,
5. Definition
Reinsurance is insurance that is
purchased by an insurance
company (the "ceding company"
or "cedant" or "cedent" under
the arrangement) from one or
more other insurance companies
(the "reinsurer") directly or
through a broker as a means
of risk management, sometimes
in practice including tax
mitigation and other reasons.
6. In Reinsurance one insurance
company purchase an insurance policy
from another insurance company. This
is basically insurance for insurance
companies. Sometimes, this type of
coverage is also referred to as stop-loss
insurance. One insurance company
will basically buying a portion of the
risks from another insurance company.
The company that takes over the risks
will also receive some of the
compensation from the insurance
policies.
7. Also termed as……
Reinsurance is also known
as
•Insurance of insurance
co.,
•Stop-loss insurance
8. Objectives
To limit liability on
specific risks
To stabilize loss experience
To protect against
catastrophes
To increase capacity
9. Methods of
reinsurRaenincsuera…nce methods
Facultative
method
proportion
al
Non
proportional
Stop-loss
Quota
share
Surplu
s
treati
es
Treaty
method
10. Who performs this
reinsurance function??
Reinsurance companies
eg : Korean Reinsurance
co.,(Korea)
Mapfre Re (Spain)…
Reinsurance pools
eg: United states aircraft
insurance group, General
insurance corporation of
