UK-based Pool Re has said that it is to stop reinsuring
contingency losses related to terrorism.
In many cases, companies seek the insurance cover in order to benefit from the reinsuring
company's expertise and financing while the ceding company expands its product range or move in to a new geographical area.
It sold the policies in the LTCI block SHIP is reinsuring
from 1992 through 2005 in Ohio, Pennsylvania and Virginia.
While strong growth in Insurance Linked Securities ILS issuance will certainly provide support - given that it is driven by the property and casualty insurance segment - the outperformance is predicated on the domicile remaining a preferred market for insuring and reinsuring
risks in the non-life space, especially in the North America region.
Because of the recent financial market volatility and the current regulatory climate, it appears some life insurers have been more open to reinsuring
certain blocks of business.
Health: Why More Middle Class People Are Uninsured and What the Government Can Do, by Katherine Swartz, 2006, Russell Sage Foundation, New York, pp.
SOME 75% OF FORTUNE 500 companies have captive insurance companies, but a key challenge has always been efficiently reinsuring
captives' risks, with the options mostly limited to Lloyd's of London or reinsurers based in Bermuda.
The Committee of European Insurance and Occupational Pensions Supervisors (CEIOPS) published, on 21 December, the technical specifications that it plans to use to carry out its fourth impact study (Quantitative Impact Study, QIS4), covering the period from April to July 2008, on the proposal for the so-called Solvency II Directive (European scheme for the solvency of insurance companies or reinsuring
companies) presented on 10 July 2007 (see Europolitics 3344).
Conversely, if it believes that it is likely to suffer catastrophic losses, it may wish to set the AFL lower, again reinsuring
any amount above that limit.
In very simple terms, insurance companies generally spread the risk of suffering losses on policies of insurance by "reinsuring
" part of their risks with reinsurers.
In Lipton, the insured propounded discovery to obtain the reinsuring
agreements and any related correspondence regarding the adjustment and defense of the underlying case that may have been sent to the reinsurer.
income taxes on the investment income it earns from reinsuring
its U.S.-owned business--"a level playing field," said Hartford's senior tax executive William Malchodi.
MI reinsurance should be considered within the context of other insurance ventures being undertaken to determine the organization's appetite for the risk of reinsuring
Reinsurance is typically bought by an insurance company wanting to lay off some of the risk it has taken; reinsurers themselves can then lay off the risk, ad infinitum, in a process called "retrocession." Lloyd's did this compulsively and incestuously, reinsuring
itself through its own syndicates.
Another example was the report of a three-step reinsurance cycle where one firm reinsured with a second, which reinsured with a third, which reinsured with the first, which was thus reinsuring
itself and paying commissions for accepting its own risk.