Reinsuring The Agent-Owned Captive Insurance CompanyPosted by Dehn Boye on July 5th, 2021 The insurance agent has already been given very small exposure to and education in the world of reinsurance. Nearly all agents only turn out to be aware of reinsurance when an insurance coverage company underwriter tells the agent of which they cannot publish that risk due to the fact our insurance company's treaty reinsurance agreements prevent us through writing that form of business. Since reinsurers over the years have been the traditional risk-taking company, their influence in identifying underwriting philosophy with regard to primary insurers has grown significantly. check here , because these people are taking a much larger amount of direct exposure on a specific insurance company's specific risk, now determine the primary pricing, typically the amount of the deductible, the volume of the credit rating or debit. Reinsurers now have to know a great offer more about the primary insurance company. The agent should consider the purchase of a reinsurance program for their agent-owned captive insurance plan company. Many of the methods to buying reinsurance are similar to be able to what a traditional insurance company uses. The agent requires to be knowledgeable about the various forms of reinsurance: a single. Quota Share Reinsurance 2. Excess of Loss Reinsurance 3. Catastrophic Reinsurance 4. Aggregate Excess of Damage Reinsurance 5. Stop Loss Reinsurance 6. Specific Risk Reinsurance Although the capital requirements regarding starting agent-owned attentive insurance companies, particularly those in typically the offshore domiciles, are comparatively small , and mindful consideration should become paid to the structure of any thorough reinsurance program. Long gone are the times when aggregate stoploss reinsurance could end up being easily ascertained in order to guarantee underwriting profits for the agent-owned captivLike it? Share it! More by this author |