Skills Unit
UW20004-00
Understand reinsurance
10 CIP Points
Understand reinsurance
AUD $460
General Insurance
Reinsurance
5-week Study Period
10 Credit Points
Intermediate
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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