Reinsurance Structures Training Course

Participants can read core treaty provisions and identify clauses requiring underwriting, legal or claims scrutiny.

• Treaty slip components: parties, classes, period, limits and premium
• Definitions of ultimate net loss, occurrence and original net loss
• Hours clauses and event definitions for catastrophe aggregation
• Exclusions, warranties and conditions precedent affecting treaty recovery
• Claims cooperation and claims control clauses compared carefully
• Follow-the-settlements provisions and cedant claims-handling responsibilities
• Contract certainty controls before inception and binder documentation

Participants can determine when facultative protection is appropriate and prepare a clear facultative submission.

• Facultative placement triggers for large, unusual or excluded individual risks
• Facultative obligatory arrangements and their underwriting acceptance parameters
• Submission data: sums insured, values, hazards, loss history and surveys
• Placing slips, lines, signed shares and subscription market mechanics
• Comparing facultative quotations by coverage, exclusions, price and security
• Certificate wording, endorsements and evidence of facultative cover
• Managing facultative renewals, cancellations and midterm material changes

Participants can select and calculate the financial effects of quota share and surplus treaty arrangements.

• Quota share treaties: fixed participation in premiums, losses and expenses
• Surplus treaties using lines, retention and treaty capacity calculations
• Cession limits, automatic acceptance and facultative overflow treatment
• Original conditions clauses and proportional treaty scope
• Ceding commission, overriding commission and expense allowance mechanics
• Sliding-scale commissions linked to loss ratios and treaty performance
• Profit commission calculations after losses, expenses and carried-forward deficits

Participants can analyse excess of loss, catastrophe and aggregate protections using loss scenarios.

• Per-risk excess of loss attachment, limit and retained liability
• Catastrophe excess of loss layers for event-driven accumulation losses
• Aggregate excess of loss protection for adverse annual loss experience
• Stop loss treaties and portfolio-level loss ratio protection
• Franchise, deductible and corridor structures within non-proportional covers
• Reinstatement provisions, paid reinstatements and reinstatement premium calculations
• Loss occurrence aggregation under hours clauses and event definitions

Participants can construct a coherent reinsurance programme from exposure, loss and capital information.

• Retention selection using risk appetite, capital capacity and loss experience
• Layer design from probable maximum loss and return-period analysis
• Vertical and horizontal programme exhaustion under multiple loss scenarios
• Clash exposure analysis across property, casualty and specialty portfolios
• Aggregate management for geographic, peril and policyholder concentrations
• Retrocession structures used by reinsurers to manage peak exposures
• Programme gap analysis between policy limits and reinsurance protection

Participants can assess pricing inputs, treaty economics and reinsurer underwriting information requirements.

• Exposure rating using sums insured, premiums, limits and catastrophe zones
• Experience rating from burning cost, loss development and exposure trends
• Rate-on-line calculations for excess of loss treaty layers
• Expected loss cost, brokerage and profit margin components
• Subject premium definitions and adjustable premium mechanisms
• Portfolio data validation before treaty submission and renewal negotiations
• Underwriting information packs for reinsurer technical review

Participants can manage reinsurance recoveries from notification through collection and reserve monitoring.

• Claims notification thresholds, reporting timetables and bordereaux requirements
• Recovery calculations for proportional and non-proportional treaty claims
• Case reserves, incurred but not reported reserves and ceded estimates
• Cash calls, loss advices and settlement documentation for reinsurers
• Disputed recoveries: coverage interpretation, quantum and claims-handling evidence
• Reinsurer financial strength assessment using ratings, capital and payment history
• Collateral, funds withheld and letters of credit for counterparty mitigation

Participants can identify how reinsurance affects financial reporting, solvency measures and governance decisions.

• Gross and ceded premium presentation within insurance financial statements
• Reinsurance recoverables, impairment assessment and counterparty credit exposure
• IFRS 17 reinsurance held measurement and loss-recovery components
• Risk transfer assessment versus financing or deposit accounting features
• Solvency II capital effects of reinsurance risk mitigation
• Own Risk and Solvency Assessment documentation for reinsurance dependence
• Board reporting of programme adequacy, concentration and renewal decisions

Participants can prepare a controlled annual renewal process and apply course methods to their own responsibilities.

• Annual renewal timetable from exposure collection through signed treaty documentation
• Broker selection, market submission strategy and quotation comparison controls
• Negotiation priorities for pricing, wording, exclusions and collateral
• Reinsurer panel construction using security, capacity and diversification criteria
• Placement approval authorities, segregation of duties and audit evidence
• Renewal debriefs using loss performance, market feedback and coverage gaps
• Personal application plan for upcoming programme review responsibilities