Reinsurance Fundamentals Training Course

Participants can compare the main treaty structures and determine their intended risk-transfer effects.

• Quota share treaties allocating fixed premium and loss proportions
• Surplus treaties ceding sums insured above the cedant retention
• Per-risk excess of loss protection for individual large losses
• Catastrophe excess of loss covering event-driven accumulation losses
• Stop loss treaties protecting annual portfolio loss ratio deterioration
• Facultative obligatory arrangements combining treaty certainty with individual risk selection

Participants can assess when facultative cover is appropriate and prepare core placement information.

• Facultative placements for unusual, high-value or excluded individual risks
• Submitting risk information through a facultative reinsurance presentation
• Original policy terms aligned with facultative contract conditions
• Broker roles in marketing, negotiation, documentation and premium collection
• Binding authority, line slips and facilities distinguished from facultative cover
• Documenting signed lines, order terms and final placement evidence

Participants can interpret treaty financial terms and calculate recoveries under defined loss scenarios.

• Attachment points, limits and retentions expressed through treaty layers
• Occurrence, aggregate and annual limits applied to loss scenarios
• Deductibles, franchises and co-participation affecting cedant net losses
• Reinstatement provisions restoring exhausted catastrophe protection after qualifying losses
• Sliding-scale commissions and profit commissions within proportional treaties
• Allocate losses between cedant and reinsurer using treaty calculations

Participants can identify the information and pricing factors used to evaluate reinsurance protection.

• Exposure data quality assessed through sums insured, premiums and locations
• Probable maximum loss and maximum foreseeable loss estimates compared
• Burning cost pricing derived from historical loss experience
• Exposure rating applied where credible loss history is limited
• Rate on line calculated against layer limit and premium
• Modelled catastrophe losses interpreted alongside underwriting and accumulation information

Participants can manage the principal stages of a reinsurance claim and recovery process.

• Claims cooperation clauses defining cedant and reinsurer responsibilities
• Prompt loss notification against contractual reporting thresholds and timescales
• Bordereaux records supporting treaty claims, premiums and outstanding balances
• Case reserves and incurred but not reported reinsurance recoverables
• Follow the settlements principle assessed alongside coverage and documentation
• Recovery collection, dispute escalation and reconciliation of reinsurer balances

Participants can review core reinsurance wording provisions for coverage certainty and operational impact.

• Treaty slips, wordings and endorsements establishing contractual evidence
• Scope clauses defining business, territories, classes and policy periods
• Hours clauses grouping catastrophe losses within specified time windows
• Event definitions tested against flood, storm and casualty accumulation scenarios
• Exclusions and special acceptances affecting cession and recovery eligibility
• Arbitration, governing law and dispute resolution provisions reviewed

Participants can explain how reinsurance affects financial reporting, regulatory treatment and capital management.

• Reinsurance held distinguished from insurance contracts issued under IFRS 17
• Ceded premium, recoverables and commission accounting terminology
• Credit risk adjustments for reinsurer non-performance and collateral
• Solvency II risk mitigation recognition and documentation expectations
• Risk transfer assessment where financing features affect regulatory treatment
• Finance, actuarial and reinsurance data reconciled for reporting

Participants can assess counterparty risk and establish governance controls for a reinsurance programme.

• Reinsurer financial strength ratings interpreted with internal credit assessments
• Counterparty concentration measured across reinsurers, groups and jurisdictions
• Collateral, letters of credit and trust arrangements for security
• Retrocession transferring reinsurer exposures to further risk carriers
• Security committees, authority limits and documented counterparty approval processes
• Renewal timetables coordinating underwriting, actuarial, claims and finance inputs

Participants can structure a reinsurance programme review and communicate renewal recommendations.

• Programme diagnostics linking portfolio changes, claims trends and protection gaps
• Compare retention alternatives using loss scenarios and volatility measures
• Layer pricing evaluated through expected losses, rate on line and commissions
• Renewal submission checklist covering exposure, claims and contract information
• Negotiation priorities defined for coverage, price, security and service
• Application plan assigns actions for upcoming renewals and control improvements