Reinsurance Principles and Practice
About this course

Overview

Reinsurance is where an insurer decides what it is prepared to lose. Across treaty and facultative, proportional and non-proportional, this gives cedants and brokers enough structure to hold a credible conversation with both sides of the deal.

What you will be able to do

Learning outcomes

  • Explain why and how insurers reinsure
  • Select treaty or facultative for a risk
  • Design proportional and excess-of-loss covers
  • Structure a layered reinsurance programme
  • Interpret reinsurance terms and pricing
What the course sets out to do

Course objectives

  • Explain the role and purpose of reinsurance
  • Distinguish treaty and facultative reinsurance
  • Compare proportional and non-proportional structures
  • Structure a reinsurance programme
  • Understand reinsurance pricing basics
Course content

Modules

01

Reinsurance fundamentals

The purpose of reinsurance and the market participants involved.

02

Treaty and facultative

When each is used and how they are placed and administered.

03

Proportional reinsurance

Quota share and surplus treaties and their mechanics.

04

Non-proportional reinsurance

Excess-of-loss and stop-loss structures and their behaviour.

05

Programme structuring

Building layered programmes to match an insurer's risk appetite.

06

Pricing and terms

Rating approaches, terms, and the reinsurance contract.

Who it is for

Target audience

Cedant insurance staff, reinsurance brokers, and underwriters who need to work with reinsurance.

Before you start

Prerequisites

Insurance experience. Some exposure to underwriting or risk transfer helps.

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