Jubilee Hills, Hyderabad.
Reinsurance
? What is Reinsurance?
"Reinsurance an insurance for insurance companies" .
? What are the major classifications into types of Reinsurance ?
Inward/Outward Treaty/Facultative Proportional / Non-Proportional
? Definition of Reinsurance?
More precisely, "Reinsurance is the transfer of part of the hazards of risks that a direct insurer assumes by way of insurance contract or legal provision on behalf of an insured, to a second insurance carrier, the reinsurer, who has no direct contractual relationship with the insured."
? Why Reinsure?
• Insuring insurers retain some risks, • Transfer the rest to reinsurers, • Achieving a global spread of risks, • The loss of one is shared by many, • All survive the loss, It breaks not any.
? Functions of Reinsurance
• Capacity through proportional treaties • Protective underwriting against accumulative liability • Conservation of foreign exchange • Professional expertise and co-operation • Making uninsurable natural perils insurable • Maintains solvency of the insurer after a catastrophic loss • Provides stability to results by balancing good years with bad years • Is a means of communication between markets and frequently acts as a catalyst.
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Hyderabad Office: Plot No.212 E, Road No.76, Jubilee Hills, Hyderabad. 500033
