Even smaller firms with no American business commonly reinsure
their operations through major firms like Lloyd's, which now will no longer do reinsurance for shipments to Iran either.
Other factors that figure in on whether MARC agrees to reinsure
business include underwriting claims control mechanisms and due diligence, and not just actuarial assumptions, according to Sweeney.
Swiss Re will reinsure
10% of Admiral's UK car insurance premium through to 2009 and have an option for 7.
The taxpayer forms a wholly owned corporation, typically in a foreign country, to reinsure
the policies and sends the premiums it receives to the unrelated insurance company, which reinsures
a portion of the premiums to the taxpayer's insurance company.
Out of 96 captive owners in seven countries, 83 percent said that they plan to use their captives to reinsure
Effective January 1, 2007 (effective date) Northwind Re will reinsure
, on a modified coinsurance basis, risks attributable to specified individual disability policies issued by or assumed by the ceding insurers.
The license allows Lloyd's to reinsure
local-currency business in China, which represents nearly 90% of the market.
For one thing, the Bermuda company must pay a special "arm's length" premium to reinsure
the business, while there's a 1 percent excise tax on premiums reinsured offshore.
Under a 1979 DOL ruling, companies that wanted to use captives to insure or reinsure
employee benefits would have had to arrange the transaction so that no more than 50% of the captive's business was related to its parent.
They are better able to determine what services they should reinsure
, what deductible they should buy, and what internal limits and other terms and conditions are appropriate for their plan and risk tolerance level.
A risk that is difficult to reinsure
on a stand-alone basis is more reinsurable in a whole-account stop-loss cover for several reasons.
The case for independent audits is strengthened dramatically by the tendencies of today's market, including recent evidence that reinsurers may be pulling in their horns and that ceding companies may be faced with having to retain more and reinsure