Skills Unit
UW20004-00

Understand reinsurance

10 CIP Points
Understand reinsurance
AUD $425
General Insurance Reinsurance
5-week Study Period
10 Credit Points
Intermediate
Enrol Now

What you'll learn

By the end of this learning pathway, you should be able to:

  • define what reinsurance is
  • outline the types and methods of reinsurance
  • outline the categories used within treaty reinsurance
  • understand the reinsurance claims process. 

Topics covered

Week 1

  • Introduction to Week 1
  • What is reinsurance?
  • The reinsurance players
  • The reinsurance process
  • Why have reinsurance?
  • Balanced and unbalanced portfolios
  • Balance in the portfolio
  • The benefits of reinsurance
  • The reinsurance market
  • The global reinsurance market
  • General principles of reinsurance
  • Law and regulation
  • GPS 230 Reinsurance management
  • Reinsurance contracts
  • Reinsurance terms
  • Summary of Week 1

Week 2

  • Introduction to Week 2 
  • Reinsurance overview 
  • Methods of reinsurance 
  • Proportional reinsurance 
  • Non-proportional reinsurance (excess of loss) 
  • Summary of proportional and non-proportional reinsurance 
  • Pricing reinsurance 
  • Types of reinsurance 
  • Facultative reinsurance 
  • Facultative reinsurance: proportional and non-proportional 
  • Facultative: advantages and disadvantages 
  • Using a reinsurance broker: facultative 
  • Facultative reinsurance placement
  • Facultative reinsurance commission 

Week 3

  • Treaty reinsurance 
  • Insurance classes 
  • Treaty reinsurance methods 
  • Benefits of a treaty 
  • Treaty documentation 
  • The role of the reinsurance broker: treaty
  • Treaty reinsurance: categories 
  • Quota share
  • Quota share: example Surplus 
  • Surplus: multiple surplus treaties
  • Facultative obligatory 

Week 4

  • Introduction to Week 4 
  • Event limits and proportional treaties 
  • Per risk excess of loss (XL) Per event XL 
  • Per event XL: special treaty clauses 
  • Per event XL: case study Per event XL: Defining a program 
  • Per event XL: Risk perils Aggregate XL (or stop loss) 
  • Treaty reinsurance placement 
  • Common reinsurance principles 
  • Common reinsurance principles: net retention 
  • Common reinsurance principles: gross retention 
  • Common reinsurance principles: risk layering 
  • Common reinsurance principles: vertical and horizontal exposures 
  • Reinsurance claims Bordereau (plural bordereaux) 
  • Facultative claims 
  • Proportional treaty claims 
  • Non-proportional treaty claims 

Assessment

1 Exam and 1 Simulation

10 CIP Points
Understand reinsurance
AUD $425
General Insurance Reinsurance
5-week Study Period
10 Credit Points
Intermediate
Enrol Now