中财讲义 再保险方式 Types of Reinsurance.ppt

Types of Reinsurance 再保险方式 Types of Reinsurance There are three general types of reinsurance agreements Facultative - Individual risks are submitted to a reinsurer for consideration. Coverage terms and conditions are negotiated. The reinsurer may reject the risk. Treaty - Covers a book of business. All risks falling within the scope of the agreement must be ceded and must be accepted. Coverage is automatic. Facultative Obligatory Treaty submit：提交 Types of Reinsurance Reinsurance agreements may also be categorized as proportional or excess: Proportional or pro rata reinsurance involves sharing both premiums and losses in the same predetermined percentage. Excess reinsurance is non-proportional. The reinsured company retains losses up to a certain amount (its retention), and the reinsurer pays up to 100 percent of the excess subject to a maximum limit of liability. Categorize：分类 Three Ways Of Reinsurance Facultative Treaties Facultative Obligatory Treaty Facultative Under this method, there is no obligation on either ide to cede or accept. There is freedom of: choice of and number of reinsurers/Ceding Company amount of reinsurance to be placed/accepted the scope of cover to be placed/accepted rate to be offered/rejected Facultative While the foregoing may be considered as important advantages of this method of reinsurance, the main disadvantages are: It is expensive in administration. It is time-consuming in completing the reinsurance placement. It hampers insurers quick service to their clients. Foregoing：前述的； hampers：妨碍了 Facultative In cases where large facultative reinsurance is expected to be placed, the market should be sounded and a lead obtained for a specific rate, which then should be quoted the insured to avoid embarrassment all around. rate to be offered/rejected Quote：报价； embarrassment：阻碍 all around：周围 Facultative Uses: Its main uses are: when a large capacity is required. where there are no automatic reinsurance facilities available, o