Reinsurance: principles and state of the art ; a guidebook for home learners
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| Format: | Book |
| Language: | English German |
| Published: |
Karlsruhe
VVW
2004
|
| Edition: | 2. ed. |
| Series: | Bildungsnetzwerk Versicherungswirtschaft
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| Subjects: | |
| Online Access: | Inhaltsverzeichnis |
| Physical Description: | XIX, 422 S. graph. Darst. 25 cm |
| ISBN: | 3899521595 |
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| 245 | 1 | 0 | |a Reinsurance |b principles and state of the art ; a guidebook for home learners |c ed. by Swiss Re Germany AG. Andreas Schwepcke. [Contributing authors: Dieter Arndt ... Transl.: Swiss Re Group Language Service] |
| 250 | |a 2. ed. | ||
| 264 | 1 | |a Karlsruhe |b VVW |c 2004 | |
| 300 | |a XIX, 422 S. |b graph. Darst. |c 25 cm | ||
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| _version_ | 1804136268206964736 |
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| adam_text | CONTENTS
CONTENTS
1. THE ECONOMIC IMPORTANCE AND HISTORICAL DEVELOPMENT
OF REINSURANCE 1
1.1. HISTORY OF REINSURANCE 1
1.1.1. THE BEGINNINGS OF REINSURANCE 1
1.1.2. THE EMERGENCE OF PROFESSIONAL REINSURANCE 2
1.1.2.1. THE INDUSTRIAL REVOLUTION - THE HEYDAY OF REINSURANCE 3
1.1.2.2. IMPERIALISM-THE FIRST PEAK 3
1.1.2.3. WORLD WARS AND WORLD ECONOMIC CRISES-A TIME OF TRIALS 4
1.1.2.4. THE POST-WAR PERIOD - ON THE WAY TO A GLOBAL MARKET 5
1.1.2.5. THE PRESENT DAY-INTERNATIONALITY AND CRITICAL SIZE 6
1.1.3. REINSURANCE ON A PER-RISK BASIS AND FOR A LARGE NUMBER OF RISKS 7
1.2. FUNDAMENTALS OF REINSURANCE 7
1.2.1. REINSURANCE AS A DIRECT INSURER S RISK MANAGEMENT 7
1.2.1.1. THE CONCEPT OF RISK 7
1.2.1.2. MANAGING RISK BY PLANNING AHEAD 9
1.2.1.3. FORMING COMMUNITIES FOR MANAGING RISKS 10
1.2.1.4. EQUALISATION OF RISK ACROSS THE PORTFOLIO 11
1.2.1.5. DEMAND FOR REINSURANCE 12
1.2.1.6. INWARD AND OUTWARD REINSURANCE 13
1.2.1.7. RETROCESSION AS THE REINSURER S REINSURANCE 13
1.2.1.8. ATOMISATION OF RISK 13
1.2.1.9. STRUCTURE OF THE REINSURER S PARTICIPATION 14
1.3. DISTINCTION BETWEEN REINSURANCE AND OTHER FORMS OF RISK TRANSFER 14
1.3.1. DISTINCTION BETWEEN COINSURANCE AND REINSURANCE 14
1.3.2. DISTINCTION BETWEEN REINSURANCE AND INSURANCE POOLS 15
1.3.3. PLACING RISKS ON THE CAPITAL MARKET 17
1.3.4. CAPTIVES 17
1.4. THE FUNCTIONS OF REINSURANCE 20
1.4.1. THE MICROECONOMIC FUNCTIONS OF REINSURANCE 20
1.4.1.1. THE PRINCIPAL FUNCTIONS OF REINSURANCE-A RESUME 20
1.4.1.2. THE REINSURER AS A RISK CARRIER 21
1.4.1.3. REINSURER S SUPPORT FOR FUNDING RISK 24
1.4.1.4. REINSURER S SERVICES 25
1.4.2. THE MACROECONOMIC FUNCTION OF REINSURANCE 27
1.4.2.1. THE MACROECONOMIC IMPORTANCE OF REINSURANCE AS PART OF THE
INSURANCE INDUSTRY 27
1.4.2.2. THE MACROECONOMIC IMPORTANCE OF REINSURANCE IN ITS OWN RIGHT 27
1.5. REINSURANCE POLICY FROM THE DIRECT INSURER S AND REINSURER S
PERSPECTIVE 28
1.5.1. THE DIRECT INSURER S REINSURANCE POLICY 29
1.5.1.1. OBJECTIVE DETERMINANTS (REINSURANCE DEMAND) 29
1.5.1.2. SUBJECTIVE DETERMINANTS (THE CEDENT S RISK PROPENSITY) 32
1.5.2. THE REINSURER S UNDERWRITING POLICY 34
1.5.2.1. OBJECTIVE DETERMINANTS (REINSURANCE CAPACITY) 35
1.5.2.2. SUBJECTIVE DETERMINANTS (REINSURABILITY) 35
1.5.2.3. TYPES OF REINSURER 36
1.6. THE ORGANISATION AND ECONOMIC IMPORTANCE OF REINSURANCE 40
1.6.1. HOW INWARD AND OUTWARD REINSURANCE IS ORGANISED 40
CONTENTS
1.6.1.1. FORMS OF ORGANISATION OF REINSURANCE COMPANIES 40
1.6.1.2. THE INTERNAL ORGANISATION OF A REINSURANCE COMPANY 41
1.6.1.3. THE ORGANISATION OF REINSURANCE PURCHASING AT A DIRECT
INSURANCE
COMPANY 44
1.6.2. THE ECONOMIC IMPORTANCE OF REINSURANCE 44
1.6.2.1. THE INTERNATIONAL REINSURANCE MARKET AND THE ORGANISATION OF
LLOYD S 44
1.6.2.2. THE FUNCTION OF INTERMEDIARIES IN THE REINSURANCE MARKET 46
2. LEGAL FOUNDATIONS 49
2.1. THE REINSURANCE CONTRACT 49
2.1.1. SOURCES OF LAW 49
2.1.1.1. SOURCES OF LAW APPLICABLE TO REINSURANCE IN GERMANY 50
2.1.1.2. TERMS OF TRADE 55
2.1.2. LEGAL NATURE 56
2.1.2.1. REINSURANCE 56
2.1.2.2. THE REINSURANCE CONTRACT 56
2.1.2.3. REDUCTION OF RISK 58
2.1.2.4. TAX DEDUCTIBILITY OF THE DIRECT INSURER S REINSURANCE PREMIUMS
58
2.1.3. INCEPTION AND STRUCTURE OF THE REINSURANCE CONTRACT 59
2.1.3.1. GENESIS OF A REINSURANCE CONTRACT 59
2.1.3.2. DIFFERENCES AND PECULIARITIES OF FACULTATIVE BUSINESS AS
OPPOSED
TO OBLIGATORY BUSINESS 61
2.1.3.3. THE ROLE OF THE REINSURANCE BROKER 62
2.1.3.4. THE ROLE OF THE LEADING REINSURER 63
2.1.3.5. SIGNING-DOWN AND SIGNING-UP 63
2.1.3.6. FORMAL STRUCTURE OF THE REINSURANCE CONTRACT 64
2.1.4. SCOPE OF COVER OF THE OBLIGATORY REINSURANCE TREATY 66
2.1.4.1. MATERIAL SCOPE OF COVER 66
2.1.4.2. GEOGRAPHIC SCOPE OF COVER 67
2.1.4.3. TEMPORAL SCOPE OF COVER 68
2.1.4.4. PORTFOLIO ARRANGEMENTS 70
2.1.4.5. TERMINATION OF THE CONTRACT 72
2.2. FURTHER LEGAL ASPECTS 74
2.2.1. FOLLOW THE SETTLEMENTS 74
2.2.1.1. BACKGROUND CONDITIONS AND LIMITS OF THE
FOLLOW-THE-SETTLEMENTS
PRINCIPLE 75
2.2.1.2. LIMITS TO THE DUTY TO FOLLOW THE SETTLEMENTS 76
2.2.1.3. CONTRACTUAL LIMITATIONS ON THE FOLLOW-THE-SETTLEMENTS PRINCIPLE
77
2.2.1.4. ERRORS AND OMISSIONS CLAUSE 77
2.2.2. FOLLOW THE FORTUNES 78
2.2.3. DUTIES OF DUE DILIGENCE AND RIGHT OF INSPECTION 79
2.2.3.1. DUTY OF DISCLOSURE AND DUTY TO PROVIDE INFORMATION 79
2.2.3.2. DUTIES OF COOPERATION AND RESERVATION OF CONSENT 79
2.2.3.3. REINSURER S RIGHT TO INFORMATION 79
2.2.3.4. EXERCISE OF THE RIGHT OF INSPECTION 80
2.2.4. ACCOUNTING AND PAYMENT MODALITIES 80
2.2.4.1. OFFSET CLAUSE 81
2.2.4.2. CURRENT ACCOUNT AND BALANCING OUT 81
2.2.4.3. CASH CLAIMS 82
2.2.4.4. DEPOSITS 82
CONTENTS XI
2.2.4.5. ACCOUNTING ITEMS 83
2.2.4.6. ACCOUNTING PERIOD AND TIME LIMITS FOR PAYMENT 83
2.2.5. SETTLEMENT OF DISPUTES 84
2.2.5.1. SETTLEMENT BY NEGOTIATION 84
2.2.5.2. ARBITRATION PROCEDURE 84
2.2.5.3. ORDINARY COURTS OF LAW 86
2.3. SPECIFIC ISSUES 88
2.3.1. THE PARTIES 88
2.3.2. SUPPLEMENTARY AND SPECIAL AGREEMENTS 89
2.3.2.1. RECIPROCITY AGREEMENTS 89
2.3.2.2. FRONTING 90
2.3.2.3. BOUQUETS 90
2.3.2.4. MOST-FAVOURABLE-TERMS CLAUSES 90
2.3.3. DIRECT CLAIMS BY POLICYHOLDERS 91
2.3.4. FUNCTIONS AND LEGAL STATUS OF THE REINSURANCE BROKER 92
2.3.4.1. FUNCTIONS AND DUTIES OF THE REINSURANCE BROKER 93
2.3.4.2. BROKERAGE AGREEMENT AND LEGAL STATUS 94
2.3.4.3. BROKER S COMMISSION 96
3. FORMS AND TYPES OF REINSURANCE 97
3.1. REINSURANCE IN GENERAL 97
3.1.1. FORMS OF REINSURANCE 98
3.1.1.1. OBLIGATORY REINSURANCE 98
3.1.1.2. FACULTATIVE REINSURANCE 99
3.1.1.3. SEMI-OBLIGATORY REINSURANCE 99
3.1.2. TYPES OF REINSURANCE 100
3.1.2.1. PROPORTIONAL REINSURANCE 101
3.1.2.2. NON-PROPORTIONAL REINSURANCE 101
3.1.3. ALTERNATIVE FORMS OF REINSURANCE 103
3.1.3.1. FINITE REINSURANCE 103
3.1.3.2. CONTINGENT FINANCING 105
3.1.3.3. DERIVATIVES 105
3.1.3.4. SECURITISATION 106
3.1.3.5. ASSET/LIABILITY MANAGEMENT 107
3.2. FACULTATIVE REINSURANCE 108
3.2.1. OFFER OF FACULTATIVE REINSURANCE AND MAKING OF A CONTRACT 108
3.2.2. PROPORTIONAL PARTICIPATION IN AN INDIVIDUAL RISK 110
3.2.3. NON-PROPORTIONAL PARTICIPATION 110
3.2.4. PRICING FACULTATIVE REINSURANCE 112
3.2.4.1. PRICING PROPORTIONAL COVERS IN FACULTATIVE REINSURANCE 112
3.2.4.2. PRICING NON-PROPORTIONAL COVERS IN FACULTATIVE REINSURANCE 112
3.2.4.3. GEARING THE PRICE TO THE UNDERWRITING RESULT OF THE REINSURANCE
CONTRACT (PROFIT SHARING) 112
3.3. OBLIGATORY REINSURANCE 113
3.3.1. OBLIGATORY REINSURANCE TECHNIQUE 113
3.3.1.1. THE SUBJECT MATTER OF AN OBLIGATORY REINSURANCE CONTRACT 113
3.3.1.2. REINSURED BUSINESS 114
3.3.1.3. LIMITING THE REINSURER S DUTY TO PAY 114
3.3.2. PROPORTIONAL REINSURANCE TREATIES 115
3.3.2.1. QUOTA SHARE REINSURANCE TREATY 115
CONTENTS
3.3.2.2. SURPLUS REINSURANCE TREATY 127
3.3.3. NON-PROPORTIONAL REINSURANCE 137
3.3.3.1. HOW NON-PROPORTIONAL REINSURANCE WORKS 137
3.3.3.2. TYPES OF NON-PROPORTIONAL REINSURANCE CONTRACT AND THEIR
PURPOSES 140
3.3.3.3. TYPES OF EXCESS OF LOSS CONTRACT AND THEIR PURPOSES 143
3.3.3.4. TYPES OF STOP LOSS CONTRACT AND THEIR PURPOSES 145
3.3.3.5. STRUCTURAL PROBLEMS OF NON-PROPORTIONAL REINSURANCE 149
3.3.4. INTERPLAY BETWEEN DIFFERENT TYPES OF REINSURANCE 152
3.3.4.1. INTERPLAY BETWEEN PROPORTIONAL CONTRACTS 153
3.3.4.2. INTERPLAY BETWEEN NON-PROPORTIONAL CONTRACTS 159
3.3.4.3. DESIGNING A PROGRAMME COMPRISING PROPORTIONAL AND NON-
PROPORTIONAL CONTRACTS 165
3.3.4.4. COMBINATION OF OBLIGATORY AND FACULTATIVE REINSURANCE 169
4. CHARACTERISTIC FEATURES OF REINSURANCE IN THE MAJOR CLASSES
OF INSURANCE 173
4.1. INSURANCE RISKS AND HOW THEY RELATE TO REINSURANCE 173
4.1.1. RISK OF RANDOM FLUCTUATION 174
4.1.2. RISK OF ERROR 175
4.1.3. RISK OF CHANGE 175
4.1.4. DIAGNOSIS AND PROGNOSIS RISK 176
4.1.5. SUBJECTIVE AND OBJECTIVE RISK 176
4.2. THE NEED FOR REINSURANCE IN THE VARIOUS CLASSES OF DIRECT INSURANCE
177
4.2.1. LIFE INSURANCE 178
4.2.1.1. TYPES AND BENEFITS OF LIFE INSURANCE 178
4.2.1.2. CALCULATION OF PREMIUMS IN LIFE INSURANCE AND REINSURANCE 181
4.2.1.3. LIFE REINSURANCE 182
4.2.2. ACCIDENT INSURANCE 185
4.2.2.1. TYPES AND BENEFITS OF ACCIDENT INSURANCE 185
4.2.2.2. ACCIDENT REINSURANCE 187
4.2.3. HEALTH INSURANCE 189
4.2.3.1. TYPES AND BENEFITS OF HEALTH INSURANCE 189
4.2.3.2. CALCULATION OF PREMIUMS IN HEALTH INSURANCE AND REINSURANCE 191
4.2.3.3. HEALTH REINSURANCE 192
4.2.4. GENERAL LIABILITY INSURANCE 194
4.2.4.1. TYPES AND BENEFITS OF GENERAL LIABILITY INSURANCE 194
4.2.4.2. REINSURANCE IN GENERAL LIABILITY INSURANCE 196
4.2.4.3. PECULIARITIES OF GENERAL LIABILITY REINSURANCE 200
4.2.5. MOTOR INSURANCE 202
4.2.5.1. TYPES AND BENEFITS OF MOTOR INSURANCE 202
4.2.5.2. MOTOR REINSURANCE 204
4.2.6. PROPERTY INSURANCE 210
4.2.6.1. TYPES AND BENEFITS OF PROPERTY INSURANCE 210
4.2.6.2. PROPERTY REINSURANCE 211
4.2.7. FIRE INSURANCE 215
4.2.7.1. COVERED PERILS 215
4.2.7.2. FIRE DAMAGE INSURANCE 216
4.2.7.3. FIRE BUSINESS INTERRUPTION INSURANCE 216
4.2.7.4. FIRE REINSURANCE 218
4.2.8. ENGINEERING INSURANCE 222
CONTENTS
4.2.8.1. TYPES AND BENEFITS OF ENGINEERING INSURANCE 222
4.2.8.2. REINSURANCE OF ENGINEERING INSURANCE 227
4.2.8.3. SPECIAL FEATURES OF ENGINEERING REINSURANCE 228
4.2.9. MARINE INSURANCE 230
4.2.9.1. TYPES AND BENEFITS OF MARINE INSURANCE 231
4.2.9.2. ESSENTIAL COMPONENTS OF A MARINE INSURANCE TREATY 231
4.2.9.3. AVIATION INSURANCE 233
4.2.9.4. MARINE REINSURANCE 233
4.2.9.5. AVIATION REINSURANCE 238
4.2.10. CREDIT INSURANCE 239
4.2.10.1. TYPES AND BENEFITS OF CREDIT INSURANCE 239
4.2.10.2. RISK REVIEW AND ASSESSMENT 242
4.2.10.3. COMMERCIAL CREDIT OR POLITICAL RISK 243
4.2.10.4. REINSURANCE OF CREDIT INSURANCE 243
4.2.10.5. SPECIAL PROBLEMS IN CREDIT REINSURANCE 245
4.3. STRUCTURE OF A REINSURANCE PROGRAMME 246
4.3.1. FACTORS DETERMINING THE STRUCTURE OF A REINSURANCE PROGRAMME 246
4.3.1.1. OBJECTIVE FACTORS 246
4.3.1.2. AVAILABILITY OF REINSURANCE PRODUCTS THAT MEET THE CEDENT S
REQUIREMENTS 248
4.3.1.3. SUBJECTIVE FACTORS 249
4.3.2. STRUCTURE OF A REINSURANCE PROGRAMME 250
4.3.2.1. REINSURANCE IN LIFE INSURANCE 251
4.3.2.2. REINSURANCE IN PERSONAL ACCIDENT INSURANCE 251
4.3.2.3. REINSURANCE IN HEALTH INSURANCE 252
4.3.2.4. REINSURANCE IN LIABILITY INSURANCE 253
4.3.2.5. REINSURANCE IN MOTOR INSURANCE 253
4.3.2.6. REINSURANCE IN THE GENERAL PROPERTY LINES 254
4.3.2.7. REINSURANCE IN HAILSTORM INSURANCE 254
4.3.2.8. REINSURANCE IN FIRE INSURANCE 254
4.3.2.9. REINSURANCE IN ENGINEERING INSURANCE 255
4.3.2.10. REINSURANCE IN MARINE INSURANCE 256
4.3.2.11. REINSURANCE IN AVIATION INSURANCE 256
4.3.2.12. REINSURANCE IN CREDIT INSURANCE 256
4.3.2.13. REINSURANCE AGAINST TERRORISM RISKS 257
4.3.2.14. UMBRELLA REINSURANCE 258
5. INTERNAL STATISTICS
5.1. THE PURPOSE OF STATISTICS
5.2. SOURCES OF STATISTICS
5.3. REINSURERS STATISTICS
5.3.1. CLASSES OF THE REINSURER S STATISTICS
5.3.2. TYPES OF REINSURER S STATISTICS
261
261
263
263
264
266
6. REINSURANCE PRICING
6.1. THE BASICS OF PRICING
6.1.1. ELEMENTS IN THE PRICE OF REINSURANCE
6.1.1.1. PARALLELS TO AND DIFFERENCES FROM PRICING IN DIRECT INSURANCE
271
271
271
271
CONTENTS
6.1.1.2. IMPORTANCE OF THE ORIGINAL PRICE LEVEL 272
6.1.1.3. ASSESSING THE CASH FLOW 275
6.1.1.4. EARNING A REASONABLE RETURN ON THE SECURITY CAPITAL 276
6.1.1.5. REINSURANCE MARKET FORCES 278
6.1.1.6. REMUNERATION FOR THE REINSURER S SERVICES 279
6.1.2. FACTORS DETERMINING THE PRICE OF REINSURANCE 279
6.1.2.1. PRICE FOR THE RISK ASSUMED 280
6.1.2.2. VALUE OF THE ASSUMPTION OF RISK 281
6.1.3. FORMS OF PAYMENT OF THE PRICE OF REINSURANCE 281
6.1.3.1. PAYMENT OF THE PRICE IN PROPORTIONAL REINSURANCE 282
6.1.3.2. PAYMENT OF THE PRICE IN NON-PROPORTIONAL REINSURANCE 283
6.1.4. RELATIONSHIP OF THE PRICE OF REINSURANCE TO THE DUTIES OF FOLLOW
THE FORTUNES AND FOLLOW THE SETTLEMENTS 284
6.2. PRICING IN PROPORTIONAL REINSURANCE 286
6.2.1. PRICING 286
6.2.1.1. THE CONCEPT OF PROPORTIONALITY 287
6.2.1.2. FUNCTIONS OF THE REINSURANCE COMMISSION 287
6.2.1.3. PROPORTIONAL PRICING 288
6.2.1.4. EFFECTS OF SHORTFALLS AND SURPLUSES RELATIVE TO ACTUAL EXPENSES
289
6.2.2. FIXED AND VARIABLE COMMISSIONS 291
6.2.2.1. FIXED COMMISSION 291
6.2.2.2. SLIDING-SCALE COMMISSION 292
6.2.2.3. CARRY-OVER OF OFF-SCALE CLAIMS 292
6.2.2.4. VARIABLE COMMISSION ON AN OCCURRENCE OR UNDERWRITING-YEAR BASIS
293
6.2.3. CEDENT S PARTICIPATION IN RESULTS 293
6.2.3.1. PROFIT SHARE 293
6.2.3.2. SPECIAL FORMS OF REIMBURSING EXPENSES 294
6.3. PRICING IN NON-PROPORTIONAL REINSURANCE 296
6.3.1. COMPONENTS OF THE NP PREMIUM 296
6.3.1.1. RISK PREMIUM 296
6.3.1.2. FLUCTUATION LOADING 296
6.3.1.3. INTEREST DISCOUNT 298
6.3.1.4. EXPENSES 298
6.3.1.5. PROFIT 299
6.3.2. PRICING METHODS IN AN OVERVIEW 300
6.3.3. OTHER CONTRACTUAL AGREEMENTS AFFECTING PRICING 301
6.3.3.1. COVER LIMITS 301
6.3.3.2. SECOND RETENTION 304
6.3.3.3. PROFIT SHARE AGREEMENT AND NO-CLAIMS BONUS 305
6.3.4. EXPERIENCE RATING 307
6.3.4.1. DEFINITION AND BASIC ASSUMPTIONS OF THE BURNING-COST PROCEDURE
307
6.3.4.2. FACTORS INFLUENCING CLAIMS AND PREMIUMS 309
6.3.4.3. PROJECTION OF CLAIMS AND PREMIUMS 310
6.3.4.4. INFORMATION REQUIRED 312
6.3.4.5. MARKET RATING 314
6.3.4.6. SPECIAL SITUATION IN THE LONG-TAIL CLASSES OF BUSINESS 315
6.3.5. EXPOSURE RATING 325
6.3.5.1. DEFINITION AND BASIC ASSUMPTIONS OF THE PROCEDURE 325
6.3.5.2. EXPOSURE RATING IN FIRE 328
6.3.5.3. INCREASED LIMITS RATING IN LIABILITY 331
6.3.5.4. CODED XL COVERS 332
6.3.6. HYBRID FORMS AND MORE COMPLEX MATHEMATICAL PROCEDURES 333
CONTENTS XV
6.3.6.1. PARETO MODEL 333
6.3.6.2. RETURN PERIODS AND FREQUENCY EXTRAPOLATION 338
6.3.6.3. SIMULATION MODELS 339
6.3.6.4. PAYBACK AND RATE ON LINE 339
7. FINANCIAL ACCOUNTING AND TECHNICAL PROVISIONS 341
7.1. ANNUAL FINANCIAL STATEMENTS AND THE MATCHING PRINCIPLE 341
7.2. TECHNICAL PROVISIONS UNDER THE GERMAN COMMERCIAL CODE 343
7.2.1. DEFINITIONS 343
7.2.2. PROVISION FOR UNEARNED PREMIUMS 346
7.2.2.1. GENERAL COMMENTS ON THE PROVISION FOR UNEARNED PREMIUMS 346
7.2.2.2. ACCOUNTING PRINCIPLES 347
7.2.2.3. VALUATION PRINCIPLES 347
7.2.2.4. PROVISION FOR UNEARNED PREMIUMS AND REINSURANCE 349
7.2.3. PROVISION FOR OUTSTANDING CLAIMS 350
7.2.3.1. GENERAL 350
7.2.3.2. ACCOUNTING PRINCIPLES 351
7.2.3.3. VALUATION PRINCIPLES 352
7.2.3.4. PROVISION FOR OUTSTANDING CLAIMS AND REINSURANCE 353
7.2.4. EQUALISATION PROVISION 354
7.2.4.1. DEFINITION OF THE EQUALISATION PROVISION 354
7.2.4.2. ACCOUNTING PRINCIPLES 355
7.2.4.3. VALUATION PRINCIPLES 357
7.2.4.4. GENERAL COMMENTS ON THE EQUALISATION PROVISION 358
7.2.4.5. EQUALISATION PROVISION AND REINSURANCE 358
7.2.5. OTHER TECHNICAL PROVISIONS 359
7.3. INTERNATIONAL ACCOUNTING PRINCIPLES 360
8. SPECIAL ASPECTS OF RISK MANAGEMENT 365
8.1. AGGREGATE EXPOSURE AND CAPITAL 365
8.1.1. EXPOSURE CONTROL AT A DIRECT INSURANCE COMPANY 365
8.1.2. CAPITAL AND RISK, USING THE EXAMPLE OF A REINSURANCE COMPANY 366
8.2. REINSURANCE COMPANIES AND EXCHANGE RATES 368
8.2.1. REINSURANCE COMPANIES AS INTERNATIONAL ORGANISATIONS 368
8.2.2. EFFECTS OF EXCHANGE RATE FLUCTUATIONS ON ECONOMIC RESULTS 369
8.2.3. EFFECTS OF EXCHANGE RATE FLUCTUATIONS ON THE FINANCIAL
STATEMENTS 370
8.2.4. CURBING THE EXCHANGE RATE RISK 372
EXERCISES AND SOLUTIONS 375
INDEX 415
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CONTENTS
CONTENTS
1. THE ECONOMIC IMPORTANCE AND HISTORICAL DEVELOPMENT
OF REINSURANCE 1
1.1. HISTORY OF REINSURANCE 1
1.1.1. THE BEGINNINGS OF REINSURANCE 1
1.1.2. THE EMERGENCE OF PROFESSIONAL REINSURANCE 2
1.1.2.1. THE INDUSTRIAL REVOLUTION - THE HEYDAY OF REINSURANCE 3
1.1.2.2. IMPERIALISM-THE FIRST PEAK 3
1.1.2.3. WORLD WARS AND WORLD ECONOMIC CRISES-A TIME OF TRIALS 4
1.1.2.4. THE POST-WAR PERIOD - ON THE WAY TO A GLOBAL MARKET 5
1.1.2.5. THE PRESENT DAY-INTERNATIONALITY AND CRITICAL SIZE 6
1.1.3. REINSURANCE ON A PER-RISK BASIS AND FOR A LARGE NUMBER OF RISKS 7
1.2. FUNDAMENTALS OF REINSURANCE 7
1.2.1. REINSURANCE AS A DIRECT INSURER'S RISK MANAGEMENT 7
1.2.1.1. THE CONCEPT OF RISK 7
1.2.1.2. MANAGING RISK BY PLANNING AHEAD 9
1.2.1.3. FORMING COMMUNITIES FOR MANAGING RISKS 10
1.2.1.4. EQUALISATION OF RISK ACROSS THE PORTFOLIO 11
1.2.1.5. DEMAND FOR REINSURANCE 12
1.2.1.6. INWARD AND OUTWARD REINSURANCE 13
1.2.1.7. RETROCESSION AS THE REINSURER'S REINSURANCE 13
1.2.1.8. ATOMISATION OF RISK 13
1.2.1.9. STRUCTURE OF THE REINSURER'S PARTICIPATION 14
1.3. DISTINCTION BETWEEN REINSURANCE AND OTHER FORMS OF RISK TRANSFER 14
1.3.1. DISTINCTION BETWEEN COINSURANCE AND REINSURANCE 14
1.3.2. DISTINCTION BETWEEN REINSURANCE AND INSURANCE POOLS 15
1.3.3. PLACING RISKS ON THE CAPITAL MARKET 17
1.3.4. CAPTIVES 17
1.4. THE FUNCTIONS OF REINSURANCE 20
1.4.1. THE MICROECONOMIC FUNCTIONS OF REINSURANCE 20
1.4.1.1. THE PRINCIPAL FUNCTIONS OF REINSURANCE-A RESUME 20
1.4.1.2. THE REINSURER AS A RISK CARRIER 21
1.4.1.3. REINSURER'S SUPPORT FOR FUNDING RISK 24
1.4.1.4. REINSURER'S SERVICES 25
1.4.2. THE MACROECONOMIC FUNCTION OF REINSURANCE 27
1.4.2.1. THE MACROECONOMIC IMPORTANCE OF REINSURANCE AS PART OF THE
INSURANCE INDUSTRY 27
1.4.2.2. THE MACROECONOMIC IMPORTANCE OF REINSURANCE IN ITS OWN RIGHT 27
1.5. REINSURANCE POLICY FROM THE DIRECT INSURER'S AND REINSURER'S
PERSPECTIVE 28
1.5.1. THE DIRECT INSURER'S REINSURANCE POLICY 29
1.5.1.1. OBJECTIVE DETERMINANTS (REINSURANCE DEMAND) 29
1.5.1.2. SUBJECTIVE DETERMINANTS (THE CEDENT'S RISK PROPENSITY) 32
1.5.2. THE REINSURER'S UNDERWRITING POLICY 34
1.5.2.1. OBJECTIVE DETERMINANTS (REINSURANCE CAPACITY) 35
1.5.2.2. SUBJECTIVE DETERMINANTS (REINSURABILITY) 35
1.5.2.3. TYPES OF REINSURER 36
1.6. THE ORGANISATION AND ECONOMIC IMPORTANCE OF REINSURANCE 40
1.6.1. HOW INWARD AND OUTWARD REINSURANCE IS ORGANISED 40
CONTENTS
1.6.1.1. FORMS OF ORGANISATION OF REINSURANCE COMPANIES 40
1.6.1.2. THE INTERNAL ORGANISATION OF A REINSURANCE COMPANY 41
1.6.1.3. THE ORGANISATION OF REINSURANCE PURCHASING AT A DIRECT
INSURANCE
COMPANY 44
1.6.2. THE ECONOMIC IMPORTANCE OF REINSURANCE 44
1.6.2.1. THE INTERNATIONAL REINSURANCE MARKET AND THE ORGANISATION OF
LLOYD'S 44
1.6.2.2. THE FUNCTION OF INTERMEDIARIES IN THE REINSURANCE MARKET 46
2. LEGAL FOUNDATIONS 49
2.1. THE REINSURANCE CONTRACT 49
2.1.1. SOURCES OF LAW 49
2.1.1.1. SOURCES OF LAW APPLICABLE TO REINSURANCE IN GERMANY 50
2.1.1.2. TERMS OF TRADE 55
2.1.2. LEGAL NATURE 56
2.1.2.1. REINSURANCE 56
2.1.2.2. THE REINSURANCE CONTRACT 56
2.1.2.3. REDUCTION OF RISK 58
2.1.2.4. TAX DEDUCTIBILITY OF THE DIRECT INSURER'S REINSURANCE PREMIUMS
58
2.1.3. INCEPTION AND STRUCTURE OF THE REINSURANCE CONTRACT 59
2.1.3.1. GENESIS OF A REINSURANCE CONTRACT 59
2.1.3.2. DIFFERENCES AND PECULIARITIES OF FACULTATIVE BUSINESS AS
OPPOSED
TO OBLIGATORY BUSINESS 61
2.1.3.3. THE ROLE OF THE REINSURANCE BROKER 62
2.1.3.4. THE ROLE OF THE LEADING REINSURER 63
2.1.3.5. SIGNING-DOWN AND SIGNING-UP 63
2.1.3.6. FORMAL STRUCTURE OF THE REINSURANCE CONTRACT 64
2.1.4. SCOPE OF COVER OF THE OBLIGATORY REINSURANCE TREATY 66
2.1.4.1. MATERIAL SCOPE OF COVER 66
2.1.4.2. GEOGRAPHIC SCOPE OF COVER 67
2.1.4.3. TEMPORAL SCOPE OF COVER 68
2.1.4.4. PORTFOLIO ARRANGEMENTS 70
2.1.4.5. TERMINATION OF THE CONTRACT 72
2.2. FURTHER LEGAL ASPECTS 74
2.2.1. FOLLOW THE SETTLEMENTS 74
2.2.1.1. BACKGROUND CONDITIONS AND LIMITS OF THE
"FOLLOW-THE-SETTLEMENTS"
PRINCIPLE 75
2.2.1.2. LIMITS TO THE DUTY TO FOLLOW THE SETTLEMENTS 76
2.2.1.3. CONTRACTUAL LIMITATIONS ON THE FOLLOW-THE-SETTLEMENTS PRINCIPLE
77
2.2.1.4. ERRORS AND OMISSIONS CLAUSE 77
2.2.2. FOLLOW THE FORTUNES 78
2.2.3. DUTIES OF DUE DILIGENCE AND RIGHT OF INSPECTION 79
2.2.3.1. DUTY OF DISCLOSURE AND DUTY TO PROVIDE INFORMATION 79
2.2.3.2. DUTIES OF COOPERATION AND RESERVATION OF CONSENT 79
2.2.3.3. REINSURER'S RIGHT TO INFORMATION 79
2.2.3.4. EXERCISE OF THE RIGHT OF INSPECTION 80
2.2.4. ACCOUNTING AND PAYMENT MODALITIES 80
2.2.4.1. OFFSET CLAUSE 81
2.2.4.2. CURRENT ACCOUNT AND BALANCING OUT 81
2.2.4.3. CASH CLAIMS 82
2.2.4.4. DEPOSITS 82
CONTENTS XI
2.2.4.5. ACCOUNTING ITEMS 83
2.2.4.6. ACCOUNTING PERIOD AND TIME LIMITS FOR PAYMENT 83
2.2.5. SETTLEMENT OF DISPUTES 84
2.2.5.1. SETTLEMENT BY NEGOTIATION 84
2.2.5.2. ARBITRATION PROCEDURE 84
2.2.5.3. ORDINARY COURTS OF LAW 86
2.3. SPECIFIC ISSUES 88
2.3.1. THE PARTIES 88
2.3.2. SUPPLEMENTARY AND SPECIAL AGREEMENTS 89
2.3.2.1. RECIPROCITY AGREEMENTS 89
2.3.2.2. FRONTING 90
2.3.2.3. BOUQUETS 90
2.3.2.4. MOST-FAVOURABLE-TERMS CLAUSES 90
2.3.3. DIRECT CLAIMS BY POLICYHOLDERS 91
2.3.4. FUNCTIONS AND LEGAL STATUS OF THE REINSURANCE BROKER 92
2.3.4.1. FUNCTIONS AND DUTIES OF THE REINSURANCE BROKER 93
2.3.4.2. BROKERAGE AGREEMENT AND LEGAL STATUS 94
2.3.4.3. BROKER'S COMMISSION 96
3. FORMS AND TYPES OF REINSURANCE 97
3.1. REINSURANCE IN GENERAL 97
3.1.1. FORMS OF REINSURANCE 98
3.1.1.1. OBLIGATORY REINSURANCE 98
3.1.1.2. FACULTATIVE REINSURANCE 99
3.1.1.3. SEMI-OBLIGATORY REINSURANCE 99
3.1.2. TYPES OF REINSURANCE 100
3.1.2.1. PROPORTIONAL REINSURANCE 101
3.1.2.2. NON-PROPORTIONAL REINSURANCE 101
3.1.3. ALTERNATIVE FORMS OF REINSURANCE 103
3.1.3.1. FINITE REINSURANCE 103
3.1.3.2. CONTINGENT FINANCING 105
3.1.3.3. DERIVATIVES 105
3.1.3.4. SECURITISATION 106
3.1.3.5. ASSET/LIABILITY MANAGEMENT 107
3.2. FACULTATIVE REINSURANCE 108
3.2.1. OFFER OF FACULTATIVE REINSURANCE AND MAKING OF A CONTRACT 108
3.2.2. PROPORTIONAL PARTICIPATION IN AN INDIVIDUAL RISK 110
3.2.3. NON-PROPORTIONAL PARTICIPATION 110
3.2.4. PRICING FACULTATIVE REINSURANCE 112
3.2.4.1. PRICING PROPORTIONAL COVERS IN FACULTATIVE REINSURANCE 112
3.2.4.2. PRICING NON-PROPORTIONAL COVERS IN FACULTATIVE REINSURANCE 112
3.2.4.3. GEARING THE PRICE TO THE UNDERWRITING RESULT OF THE REINSURANCE
CONTRACT (PROFIT SHARING) 112
3.3. OBLIGATORY REINSURANCE 113
3.3.1. OBLIGATORY REINSURANCE TECHNIQUE 113
3.3.1.1. THE SUBJECT MATTER OF AN OBLIGATORY REINSURANCE CONTRACT 113
3.3.1.2. REINSURED BUSINESS 114
3.3.1.3. LIMITING THE REINSURER'S DUTY TO PAY 114
3.3.2. PROPORTIONAL REINSURANCE TREATIES 115
3.3.2.1. QUOTA SHARE REINSURANCE TREATY 115
CONTENTS
3.3.2.2. SURPLUS REINSURANCE TREATY 127
3.3.3. NON-PROPORTIONAL REINSURANCE 137
3.3.3.1. HOW NON-PROPORTIONAL REINSURANCE WORKS 137
3.3.3.2. TYPES OF NON-PROPORTIONAL REINSURANCE CONTRACT AND THEIR
PURPOSES 140
3.3.3.3. TYPES OF EXCESS OF LOSS CONTRACT AND THEIR PURPOSES 143
3.3.3.4. TYPES OF STOP LOSS CONTRACT AND THEIR PURPOSES 145
3.3.3.5. STRUCTURAL PROBLEMS OF NON-PROPORTIONAL REINSURANCE 149
3.3.4. INTERPLAY BETWEEN DIFFERENT TYPES OF REINSURANCE 152
3.3.4.1. INTERPLAY BETWEEN PROPORTIONAL CONTRACTS 153
3.3.4.2. INTERPLAY BETWEEN NON-PROPORTIONAL CONTRACTS 159
3.3.4.3. DESIGNING A PROGRAMME COMPRISING PROPORTIONAL AND NON-
PROPORTIONAL CONTRACTS 165
3.3.4.4. COMBINATION OF OBLIGATORY AND FACULTATIVE REINSURANCE 169
4. CHARACTERISTIC FEATURES OF REINSURANCE IN THE MAJOR CLASSES
OF INSURANCE 173
4.1. INSURANCE RISKS AND HOW THEY RELATE TO REINSURANCE 173
4.1.1. RISK OF RANDOM FLUCTUATION 174
4.1.2. RISK OF ERROR 175
4.1.3. RISK OF CHANGE 175
4.1.4. DIAGNOSIS AND PROGNOSIS RISK 176
4.1.5. SUBJECTIVE AND OBJECTIVE RISK 176
4.2. THE NEED FOR REINSURANCE IN THE VARIOUS CLASSES OF DIRECT INSURANCE
177
4.2.1. LIFE INSURANCE 178
4.2.1.1. TYPES AND BENEFITS OF LIFE INSURANCE 178
4.2.1.2. CALCULATION OF PREMIUMS IN LIFE INSURANCE AND REINSURANCE 181
4.2.1.3. LIFE REINSURANCE 182
4.2.2. ACCIDENT INSURANCE 185
4.2.2.1. TYPES AND BENEFITS OF ACCIDENT INSURANCE 185
4.2.2.2. ACCIDENT REINSURANCE 187
4.2.3. HEALTH INSURANCE 189
4.2.3.1. TYPES AND BENEFITS OF HEALTH INSURANCE 189
4.2.3.2. CALCULATION OF PREMIUMS IN HEALTH INSURANCE AND REINSURANCE 191
4.2.3.3. HEALTH REINSURANCE 192
4.2.4. GENERAL LIABILITY INSURANCE 194
4.2.4.1. TYPES AND BENEFITS OF GENERAL LIABILITY INSURANCE 194
4.2.4.2. REINSURANCE IN GENERAL LIABILITY INSURANCE 196
4.2.4.3. PECULIARITIES OF GENERAL LIABILITY REINSURANCE 200
4.2.5. MOTOR INSURANCE 202
4.2.5.1. TYPES AND BENEFITS OF MOTOR INSURANCE 202
4.2.5.2. MOTOR REINSURANCE 204
4.2.6. PROPERTY INSURANCE 210
4.2.6.1. TYPES AND BENEFITS OF PROPERTY INSURANCE 210
4.2.6.2. PROPERTY REINSURANCE 211
4.2.7. FIRE INSURANCE 215
4.2.7.1. COVERED PERILS 215
4.2.7.2. FIRE DAMAGE INSURANCE 216
4.2.7.3. FIRE BUSINESS INTERRUPTION INSURANCE 216
4.2.7.4. FIRE REINSURANCE 218
4.2.8. ENGINEERING INSURANCE 222
CONTENTS
4.2.8.1. TYPES AND BENEFITS OF ENGINEERING INSURANCE 222
4.2.8.2. REINSURANCE OF ENGINEERING INSURANCE 227
4.2.8.3. SPECIAL FEATURES OF ENGINEERING REINSURANCE 228
4.2.9. MARINE INSURANCE 230
4.2.9.1. TYPES AND BENEFITS OF MARINE INSURANCE 231
4.2.9.2. ESSENTIAL COMPONENTS OF A MARINE INSURANCE TREATY 231
4.2.9.3. AVIATION INSURANCE 233
4.2.9.4. MARINE REINSURANCE 233
4.2.9.5. AVIATION REINSURANCE 238
4.2.10. CREDIT INSURANCE 239
4.2.10.1. TYPES AND BENEFITS OF CREDIT INSURANCE 239
4.2.10.2. RISK REVIEW AND ASSESSMENT 242
4.2.10.3. COMMERCIAL CREDIT OR POLITICAL RISK 243
4.2.10.4. REINSURANCE OF CREDIT INSURANCE 243
4.2.10.5. SPECIAL PROBLEMS IN CREDIT REINSURANCE 245
4.3. STRUCTURE OF A REINSURANCE PROGRAMME 246
4.3.1. FACTORS DETERMINING THE STRUCTURE OF A REINSURANCE PROGRAMME 246
4.3.1.1. OBJECTIVE FACTORS 246
4.3.1.2. AVAILABILITY OF REINSURANCE PRODUCTS THAT MEET THE CEDENT'S
REQUIREMENTS 248
4.3.1.3. SUBJECTIVE FACTORS 249
4.3.2. STRUCTURE OF A REINSURANCE PROGRAMME 250
4.3.2.1. REINSURANCE IN LIFE INSURANCE 251
4.3.2.2. REINSURANCE IN PERSONAL ACCIDENT INSURANCE 251
4.3.2.3. REINSURANCE IN HEALTH INSURANCE 252
4.3.2.4. REINSURANCE IN LIABILITY INSURANCE 253
4.3.2.5. REINSURANCE IN MOTOR INSURANCE 253
4.3.2.6. REINSURANCE IN THE GENERAL PROPERTY LINES 254
4.3.2.7. REINSURANCE IN HAILSTORM INSURANCE 254
4.3.2.8. REINSURANCE IN FIRE INSURANCE 254
4.3.2.9. REINSURANCE IN ENGINEERING INSURANCE 255
4.3.2.10. REINSURANCE IN MARINE INSURANCE 256
4.3.2.11. REINSURANCE IN AVIATION INSURANCE 256
4.3.2.12. REINSURANCE IN CREDIT INSURANCE 256
4.3.2.13. REINSURANCE AGAINST TERRORISM RISKS 257
4.3.2.14. UMBRELLA REINSURANCE 258
5. INTERNAL STATISTICS
5.1. THE PURPOSE OF STATISTICS
5.2. SOURCES OF STATISTICS
5.3. REINSURERS' STATISTICS
5.3.1. CLASSES OF THE REINSURER'S STATISTICS
5.3.2. TYPES OF REINSURER'S STATISTICS
261
261
263
263
264
266
6. REINSURANCE PRICING
6.1. THE BASICS OF PRICING
6.1.1. ELEMENTS IN THE PRICE OF REINSURANCE
6.1.1.1. PARALLELS TO AND DIFFERENCES FROM PRICING IN DIRECT INSURANCE
271
271
271
271
CONTENTS
6.1.1.2. IMPORTANCE OF THE ORIGINAL PRICE LEVEL 272
6.1.1.3. ASSESSING THE CASH FLOW 275
6.1.1.4. EARNING A REASONABLE RETURN ON THE SECURITY CAPITAL 276
6.1.1.5. REINSURANCE MARKET FORCES 278
6.1.1.6. REMUNERATION FOR THE REINSURER'S SERVICES 279
6.1.2. FACTORS DETERMINING THE PRICE OF REINSURANCE 279
6.1.2.1. PRICE FOR THE RISK ASSUMED 280
6.1.2.2. VALUE OF THE ASSUMPTION OF RISK 281
6.1.3. FORMS OF PAYMENT OF THE PRICE OF REINSURANCE 281
6.1.3.1. PAYMENT OF THE PRICE IN PROPORTIONAL REINSURANCE 282
6.1.3.2. PAYMENT OF THE PRICE IN NON-PROPORTIONAL REINSURANCE 283
6.1.4. RELATIONSHIP OF THE PRICE OF REINSURANCE TO THE DUTIES OF FOLLOW
THE FORTUNES AND FOLLOW THE SETTLEMENTS 284
6.2. PRICING IN PROPORTIONAL REINSURANCE 286
6.2.1. PRICING 286
6.2.1.1. THE CONCEPT OF PROPORTIONALITY 287
6.2.1.2. FUNCTIONS OF THE REINSURANCE COMMISSION 287
6.2.1.3. PROPORTIONAL PRICING 288
6.2.1.4. EFFECTS OF SHORTFALLS AND SURPLUSES RELATIVE TO ACTUAL EXPENSES
289
6.2.2. FIXED AND VARIABLE COMMISSIONS 291
6.2.2.1. FIXED COMMISSION 291
6.2.2.2. SLIDING-SCALE COMMISSION 292
6.2.2.3. CARRY-OVER OF OFF-SCALE CLAIMS 292
6.2.2.4. VARIABLE COMMISSION ON AN OCCURRENCE OR UNDERWRITING-YEAR BASIS
293
6.2.3. CEDENT'S PARTICIPATION IN RESULTS 293
6.2.3.1. PROFIT SHARE 293
6.2.3.2. SPECIAL FORMS OF REIMBURSING EXPENSES 294
6.3. PRICING IN NON-PROPORTIONAL REINSURANCE 296
6.3.1. COMPONENTS OF THE NP PREMIUM 296
6.3.1.1. RISK PREMIUM 296
6.3.1.2. FLUCTUATION LOADING 296
6.3.1.3. INTEREST DISCOUNT 298
6.3.1.4. EXPENSES 298
6.3.1.5. PROFIT 299
6.3.2. PRICING METHODS IN AN OVERVIEW 300
6.3.3. OTHER CONTRACTUAL AGREEMENTS AFFECTING PRICING 301
6.3.3.1. COVER LIMITS 301
6.3.3.2. SECOND RETENTION 304
6.3.3.3. PROFIT SHARE AGREEMENT AND NO-CLAIMS BONUS 305
6.3.4. EXPERIENCE RATING 307
6.3.4.1. DEFINITION AND BASIC ASSUMPTIONS OF THE BURNING-COST PROCEDURE
307
6.3.4.2. FACTORS INFLUENCING CLAIMS AND PREMIUMS 309
6.3.4.3. PROJECTION OF CLAIMS AND PREMIUMS 310
6.3.4.4. INFORMATION REQUIRED 312
6.3.4.5. MARKET RATING 314
6.3.4.6. SPECIAL SITUATION IN THE LONG-TAIL CLASSES OF BUSINESS 315
6.3.5. EXPOSURE RATING 325
6.3.5.1. DEFINITION AND BASIC ASSUMPTIONS OF THE PROCEDURE 325
6.3.5.2. EXPOSURE RATING IN FIRE 328
6.3.5.3. INCREASED LIMITS RATING IN LIABILITY 331
6.3.5.4. CODED XL COVERS 332
6.3.6. HYBRID FORMS AND MORE COMPLEX MATHEMATICAL PROCEDURES 333
CONTENTS XV
6.3.6.1. PARETO MODEL 333
6.3.6.2. RETURN PERIODS AND FREQUENCY EXTRAPOLATION 338
6.3.6.3. SIMULATION MODELS 339
6.3.6.4. PAYBACK AND RATE ON LINE 339
7. FINANCIAL ACCOUNTING AND TECHNICAL PROVISIONS 341
7.1. ANNUAL FINANCIAL STATEMENTS AND THE MATCHING PRINCIPLE 341
7.2. TECHNICAL PROVISIONS UNDER THE GERMAN COMMERCIAL CODE 343
7.2.1. DEFINITIONS 343
7.2.2. PROVISION FOR UNEARNED PREMIUMS 346
7.2.2.1. GENERAL COMMENTS ON THE PROVISION FOR UNEARNED PREMIUMS 346
7.2.2.2. ACCOUNTING PRINCIPLES 347
7.2.2.3. VALUATION PRINCIPLES 347
7.2.2.4. PROVISION FOR UNEARNED PREMIUMS AND REINSURANCE 349
7.2.3. PROVISION FOR OUTSTANDING CLAIMS 350
7.2.3.1. GENERAL 350
7.2.3.2. ACCOUNTING PRINCIPLES 351
7.2.3.3. VALUATION PRINCIPLES 352
7.2.3.4. PROVISION FOR OUTSTANDING CLAIMS AND REINSURANCE 353
7.2.4. EQUALISATION PROVISION 354
7.2.4.1. DEFINITION OF THE EQUALISATION PROVISION 354
7.2.4.2. ACCOUNTING PRINCIPLES 355
7.2.4.3. VALUATION PRINCIPLES 357
7.2.4.4. GENERAL COMMENTS ON THE EQUALISATION PROVISION 358
7.2.4.5. EQUALISATION PROVISION AND REINSURANCE 358
7.2.5. OTHER TECHNICAL PROVISIONS 359
7.3. INTERNATIONAL ACCOUNTING PRINCIPLES 360
8. SPECIAL ASPECTS OF RISK MANAGEMENT 365
8.1. AGGREGATE EXPOSURE AND CAPITAL 365
8.1.1. EXPOSURE CONTROL AT A DIRECT INSURANCE COMPANY 365
8.1.2. CAPITAL AND RISK, USING THE EXAMPLE OF A REINSURANCE COMPANY 366
8.2. REINSURANCE COMPANIES AND EXCHANGE RATES 368
8.2.1. REINSURANCE COMPANIES AS INTERNATIONAL ORGANISATIONS 368
8.2.2. EFFECTS OF EXCHANGE RATE FLUCTUATIONS ON ECONOMIC RESULTS 369
8.2.3. EFFECTS OF EXCHANGE RATE FLUCTUATIONS ON THE FINANCIAL
STATEMENTS 370
8.2.4. CURBING THE EXCHANGE RATE RISK 372
EXERCISES AND SOLUTIONS 375
INDEX 415 |
| any_adam_object | 1 |
| any_adam_object_boolean | 1 |
| author2 | Schwepcke, Andreas |
| author2_role | edt |
| author2_variant | a s as |
| author_GND | (DE-588)17024363X |
| author_facet | Schwepcke, Andreas |
| building | Verbundindex |
| bvnumber | BV022266124 |
| classification_rvk | QQ 640 |
| ctrlnum | (OCoLC)76494072 (DE-599)BVBBV022266124 |
| dewey-full | 340 330 |
| dewey-hundreds | 300 - Social sciences |
| dewey-ones | 340 - Law 330 - Economics |
| dewey-raw | 340 330 |
| dewey-search | 340 330 |
| dewey-sort | 3340 |
| dewey-tens | 340 - Law 330 - Economics |
| discipline | Rechtswissenschaft Soziologie Wirtschaftswissenschaften |
| discipline_str_mv | Rechtswissenschaft Soziologie Wirtschaftswissenschaften |
| edition | 2. ed. |
| format | Book |
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| geographic | Deutschland (DE-588)4011882-4 gnd |
| geographic_facet | Deutschland |
| id | DE-604.BV022266124 |
| illustrated | Illustrated |
| index_date | 2024-07-02T16:44:27Z |
| indexdate | 2024-07-09T20:53:42Z |
| institution | BVB |
| institution_GND | (DE-588)10040954-4 |
| isbn | 3899521595 |
| language | English German |
| oai_aleph_id | oai:aleph.bib-bvb.de:BVB01-015476689 |
| oclc_num | 76494072 |
| open_access_boolean | |
| owner | DE-12 DE-19 DE-BY-UBM |
| owner_facet | DE-12 DE-19 DE-BY-UBM |
| physical | XIX, 422 S. graph. Darst. 25 cm |
| publishDate | 2004 |
| publishDateSearch | 2004 |
| publishDateSort | 2004 |
| publisher | VVW |
| record_format | marc |
| series2 | Bildungsnetzwerk Versicherungswirtschaft |
| spelling | Rückversicherung Reinsurance principles and state of the art ; a guidebook for home learners ed. by Swiss Re Germany AG. Andreas Schwepcke. [Contributing authors: Dieter Arndt ... Transl.: Swiss Re Group Language Service] 2. ed. Karlsruhe VVW 2004 XIX, 422 S. graph. Darst. 25 cm txt rdacontent n rdamedia nc rdacarrier Bildungsnetzwerk Versicherungswirtschaft Rückversicherung (DE-588)4050860-2 gnd rswk-swf Deutschland (DE-588)4011882-4 gnd rswk-swf Deutschland (DE-588)4011882-4 g Rückversicherung (DE-588)4050860-2 s DE-604 Schwepcke, Andreas (DE-588)17024363X edt Arndt, Dieter Sonstige oth Swiss Re Germany AG (Unterföhring) Sonstige (DE-588)10040954-4 oth SWB Datenaustausch application/pdf http://bvbr.bib-bvb.de:8991/F?func=service&doc_library=BVB01&local_base=BVB01&doc_number=015476689&sequence=000001&line_number=0001&func_code=DB_RECORDS&service_type=MEDIA Inhaltsverzeichnis |
| spellingShingle | Reinsurance principles and state of the art ; a guidebook for home learners Rückversicherung (DE-588)4050860-2 gnd |
| subject_GND | (DE-588)4050860-2 (DE-588)4011882-4 |
| title | Reinsurance principles and state of the art ; a guidebook for home learners |
| title_alt | Rückversicherung |
| title_auth | Reinsurance principles and state of the art ; a guidebook for home learners |
| title_exact_search | Reinsurance principles and state of the art ; a guidebook for home learners |
| title_exact_search_txtP | Reinsurance principles and state of the art ; a guidebook for home learners |
| title_full | Reinsurance principles and state of the art ; a guidebook for home learners ed. by Swiss Re Germany AG. Andreas Schwepcke. [Contributing authors: Dieter Arndt ... Transl.: Swiss Re Group Language Service] |
| title_fullStr | Reinsurance principles and state of the art ; a guidebook for home learners ed. by Swiss Re Germany AG. Andreas Schwepcke. [Contributing authors: Dieter Arndt ... Transl.: Swiss Re Group Language Service] |
| title_full_unstemmed | Reinsurance principles and state of the art ; a guidebook for home learners ed. by Swiss Re Germany AG. Andreas Schwepcke. [Contributing authors: Dieter Arndt ... Transl.: Swiss Re Group Language Service] |
| title_short | Reinsurance |
| title_sort | reinsurance principles and state of the art a guidebook for home learners |
| title_sub | principles and state of the art ; a guidebook for home learners |
| topic | Rückversicherung (DE-588)4050860-2 gnd |
| topic_facet | Rückversicherung Deutschland |
| url | http://bvbr.bib-bvb.de:8991/F?func=service&doc_library=BVB01&local_base=BVB01&doc_number=015476689&sequence=000001&line_number=0001&func_code=DB_RECORDS&service_type=MEDIA |
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