The framework is based on two important considerations: the captive reinsurer has flexibility in maintaining capital requirements for the toxic assets; and the reinsured
business has a low volatility and significant embedded value.
In the London insurance market it is established that the broker is the agent of the insured or reinsured
for the purpose of obtaining the policy.
All information needed for the renewal (census changes, claims status coverage parameters) is sent to the reinsured
electronically and returned electronically to the reinsurer.
In the absence of an agreement to the contrary, the insurer will be primarily responsible for the handling of a reinsured
claim under its insurance policy, and the reinsurer will not be involved directly.
Freedom Specialty's ratings reflect its projected levels of risk-adjusted capitalisation in addition to its reinsured
affiliation with Scottsdale, the agency said.
The upgrading of Grain Dealers Mutual's ratings is a result of it becoming a fully reinsured
affiliate of NGM Insurance Co (NGM) via a 100% quota share agreement effective 1 January 2010, AM Best said.
In 2003, fully 60% of the industry's new life business was reinsured
, compared with 25% only eight years ago.
Although the right to offset usually arises in claims between commercial insurers and reinsurers when, for example, the insurer has become insolvent, it is an issue for captives and risk retention groups which have reinsured
a program written by an admitted carrier.
The majority of the longevity risk from these large transactions, whether they are bulk annuities or longevity swaps, will ultimately end up being reinsured
. The longevity reinsurance market is currently very competitive, with an ever-increasing number of players and the growing size of transactions that the reinsurers will consider as they become more confident with UK longevity risk.
Since stop-loss reinsurance attaches at an agreed-upon loss ratio, uncertainty as to whether losses from acts of terrorism will be reinsured
In a letter ruling, the Internal Revenue Service dealt with a tax-exempt organization that maintained a teaching hospital formed a wholly-owned captive which reinsured
an admitted carrier which had provided medical malpractice insurance to the exempt organization, full-time faculty members, several other hospitals and full-time resident physicians employed by the hospitals.
With each transaction reinsured
, money flowed into the company's coffers, and the strategy was to generate the appearance of enough business to drive up the stock price.