In treaty contract, the reinsuring
company are bound to accept all the risks that are mentioned in the contract.
Health is divided into three broad sections: a comparison of how the face of the uninsured have changed from 1979 to 2004, a description of how the individual and small-group health insurance markets currently operate, and final proposal for a new public-private structure that may make private health insurance more affordable.
Lenders must be prepared to contribute capital to the captive to support the risk of reinsuring
a coverage as volatile as mortgage insurance.
Steve Johnson, deputy insurance commissioner with the Pennsylvania insurance department, says that the cost of reinsuring
Penn Treaty's LTCI business had gone up dramatically, which resulted in the block of business being recaptured from Imagine International Reinsurance, Ltd., Dublin, its reinsurer.
Scottish Re marketed the notes through Ballantyne Re, a public limited company formed in Ireland for the sole purpose of reinsuring
the block of business.
AN ANTI-CONDUIT provision within a treaty holds that an insurer reinsuring
its risks in a second country cannot circumvent paying its taxes (or pay a lower rate) by reinsuring
through a third country that may have a lower or zero tax rate with the second country.
Three or four years ago there was not much capacity for reinsuring
variable annuities with guarantees, says Russell Hackmann, a managing director and head of variable annuity risk management with Swiss Re, New York.
* Pricing pressure and improved technical techniques for measuring risk are encouraging securitization as an alternative to reinsuring
Insurers may accept bad risks at inadequate rates without reinsuring
Several years ago, reinsurers did make a foray into reinsuring
products with guarantees, experienced losses and stopped reinsuring
these risks for a time.
Foreman said he suspects the Greek market is absorbing that risk before reinsuring
it into the facultative market.
THE MARKET FOR REINSURING
variable annuity guarantees, shut tight for a number of years, opened a crack with the recent announcement that Lincoln National's guaranteed minimum withdrawal benefit would be reinsured by Swiss Re.